Bitcoin has just experienced its biggest downwards difficulty adjustment ever since its invention in 2009.
The difficulty to mine a block has fallen by -27.94%, meaning it is now close to 30% easier and more profitable for current miners.
In about two weeks bitcoin’s difficulty is estimated to fall again by -28.13% with this gradual adjustment so reflecting a more than 50% hash fall from 180 exahashes a second to 85.36 EH/s.
So far difficulty has fallen from 25 trillion to 14.36 T and will drop to 10.32 in 2016 blocks that take about two weeks.
That means current miners are about twice as profitable as on the 13th of May 2021, and will gain another 30% in bitcoin revenue.
In dollar revenue they’re about as profitable as when bitcoin’s price was $64,000 because both the price and the hash has halved since.
Thus where current miners and the network is concerned, nothing has changed in some ways despite China closing down many mining businesses to the point hydropower stations are now going on flash sales there.
However prior to this adjustment miners were operating on 19.93 T while price had fallen significantly since it first reached that difficulty.
Some miners therefore may have been operating at a loss as price halved. While now they get twice more coins compared to May, and are in for another 30% boost. Meaning they might have more room to accumulate and so put a price floor of sorts on bitcoin.
This difficulty adjustment moreover illustrates a smooth transition out of some 50% to 60% of the computing power, with bitcoin so showing its resilience in action.
Normal factors should now start kicking in where hash is concerned, with its increase or decrease dependent on profitability rather than China’s policy.