According to BTC.com, at a block height of 745920, bitcoin mining difficulty was decreased by 5.01%. This reported adjustment is the largest decrease in bitcoin mining in over a year.
The earlier mining difficulty used to be at 29.153 TH/s. It has now been reduced by over 5% to 27.69 TH/s.
Why Mining Difficulty Matters
Bitcoin is a decentralized blockchain, that uses miners to verify and batch transactions into a block. The mining difficulty represents the difficulty required to mine the next block. The mining difficulty is adjusted around every two weeks. The goal of the adjustment is to make it such that it requires around 10 minutes to mine the next block.
Whenever more miners and mining companies enter the competition, bitcoin’s difficulty is usually increased. However, when mines leave the competition, the difficulty is decreased to make it easier to mine the next block and make the process lucrative.
BTC.com shows that the mining difficulty was decreased by 5%. It could confirm the substantial losses the miners have been dealing with during the bear market.
