Following BTC’s Price Drop, Bitcoin Miners Benefit From a 2.35% Difficulty Reduction
During the past week, Bitcoin’s hashrate has dropped a few percentages after reaching 288 exahash per second (EH/s) on June 8, 2022. Bitcoin miners, however, got a break on Wednesday, June 22, as the mining difficulty dropped by 2.35% making it easier for miners to find blocks. The 2.35% drop brings the difficulty down to the 29.50 trillion range for the next two weeks.
Bitcoin’s Mining Difficulty Drops 2.35%
On Wednesday, June 22, at block height 741,888, Bitcoin’s mining difficulty decreased 2.35% lower than two weeks ago. At that time, the difficulty rating was 30.28 trillion and today it is 29.50 trillion. Furthermore, bitcoin’s fiat value dropped to a low of $17,593 on June 18.
Essentially, Bitcoin’s difficulty adjustment algorithm (DAA) shifts every 2016 blocks and the changes are based on the amount of time it took to find the previous 2016 block subsidies. The difficulty is meant to keep block times consistent at roughly 10 minutes in between each BTC block found.
The last difficulty change at block height 739,872, two weeks ago, increased by 1.29%. That means the previous 2016 blocks before block height 739,872 took less than two weeks to find, which means miners were faster during the period. This means while the DAA shift dropped by 2.35% today, the previous 2016 blocks were found at a much slower rate.
A 2.35% reduction makes it 2.35% easier to find BTC blocks than it was during the past two weeks or 2016 blocks found. BTC’s block reward halving is expected to occur on April 23, 2024, and is less than 100,000 blocks away.
While the hashrate tapped 288 EH/s on June 8, the network’s hashrate dipped during the crypto market rout and it hit a low of 164 EH/s on June 18. At the time of writing on Wednesday, June 22, the hashrate is coasting along at speeds just below 200 EH/s.
Over the last three days, the top five BTC mining pools include Foundry USA, F2pool, Antpool, Poolin, and Viabtc. The aforementioned five BTC mining pools command 72.8% of the global hashrate today.
During the last month, 4,271 BTC blocks were mined into existence and Foundry discovered 959 of those blocks. Antpool found 636, F2pool discovered 591, Poolin found 457, and Viabtc found 434 bitcoin (BTC) block rewards.
Over the next two weeks, it will be 2.35% easier to find BTC blocks than it was the two weeks before block height 741,888. With the price being lower, miners will benefit from the DAA reduction on Wednesday.
What do you think about Bitcoin’s difficulty reduction on Wednesday afternoon (ET)? Let us know what you think about this subject in the comments section below.