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The day of July 3 will be permanently entered in the history of cryptography. Last Saturday there was the biggest decrease in history of bitcon mining difficulties. This is mainly due to the shutdown of many BTC mines in China, which has triggered the automatic stabilization mechanism. It took place on Saturday, July 3, at exactly 8:25 European time, when mining difficulty fell by nearly 28% in block 689,471. Those who continue to mine the Bitcoin cryptocurrency, due to the situation and thus the price jump, can earn even more in the coming weeks than before.
Low BTC transaction fees
Due to this situation, transaction fees also dropped, and as a consequence, this resulted in an increase in the price of bitcoin. Currently, the Bitcoin price is still moving above the 30k support. usd, with high buyers activity. A strong link between Bitcoin and the strong interest of stablecoins, which also supports the current BTC rate.
What is the difficulty of Bitcoin mining?
Bitcoin's difficulty is measured by an internal score that started at 1 (when Satoshi started mining at the easiest level). It is programmed to increase or decrease gradually depending on how many miners are competing on the network. Currently it amounts to 14,363,025,673,659, which means a decrease from 19,932,791,027,262.
Blocks are added to the Bitcoin blockchain at a regular and predictable rate: one block approximately every 10 minutes. Blocking time measures how long it takes to create a new block, but the rate can vary depending on the number of miners on the network and the speed of their computers. When more miners compete to "find" the next block and win the 6.125 BTC reward, those blocks are solved faster. However, as miners leave the network, leaving fewer miners to compete, block mining time may slow down.
The mining difficulty decreased when the Chinese authorities put pressure on the miners' activities. It could not go unnoticed on the market, as China is one of the countries providing the highest computing power. In Xinjiang Uygur, Inner Mongolia Autonomous Region, Qinghai Province and Sichuan Province, the authorities have partially or fully closed cryptocurrency mines, threatening with serious legal and financial consequences.
During the period when mining power decreased, the average hashrate was 87.7 per second. This is the lowest figure since December 2019.
It should be added that the Bitcoin algorithm is programmed to adjust the difficulty level on its own. This level is adjusted every 2016 mined blocks or approximately every two weeks. The time for extracting the block should be 10 minutes. Recently, this time was 23 minutes, which was a record and therefore a self-regulating mechanism was activated. It is an invitation to more miners to join the network.
