In terms of market value, Bitcoin is the leading crypto asset, and the cryptocurrency’s network hash rate has dropped significantly in the past two weeks. On Saturday, July 3, the mining difficulty of the network will experience the largest epoch drop in history, as the difficulty will drop by more than 27%.
Bitcoin difficulty is expected to drop by more than 27%
This weekend, Bitcoin (BTC) will experience the biggest difficulty decline ever in the life cycle of an encrypted asset. At the time of writing, the mining difficulty of BTC is 19.93 trillion, which is expected to drop by 27.04% by Saturday morning (EDT). In Bitcoin mining, the difficulty of the network is a parameter that keeps the average time between BTC blocks consistent.
The difficulty parameter is a measure of the difficulty of mining a Bitcoin block. The higher the difficulty, the more computing power is required to find the block.
When the difficulty of mining on the network is low, it is easier for Bitcoin miners to find blocks. The increasing difficulty along with the hash rate means that attackers will have to spend a lot of resources to destroy the system.
The upcoming change in Bitcoin’s difficulty comes at a time when Chinese miners were told to operate elsewhere and a large part of their computing power went offline last Monday. During the last BTC difficulty change at block height 687,456 on June 13, 2021, the global hash rate was approximately 142.68 exahash (EH/s) per second.
Starting from the block height of 687,456, the BTC computing power dropped by 39% to 86.5 EH/s. Before a 27% decline is expected on Saturday, Bitcoin’s network difficulty has dropped twice.
November 2020 and October 2011 occurred before the biggest difficulty decline in Bitcoin history
So far, the biggest difficulty drop in BTC’s history occurred on October 30, 2011, the day before Halloween.
At that time, when the global computing power was only 8.61 terahash per second (TH/s), the difficulty dropped by 18.03%, at the height of the BTC block of 151,200. From some perspectives, the computing power of a single next-generation Bitcoin miner built by Microbt or Bitmain today is about 100 TH/s.
Interestingly, until the block height of 655,200 recorded on November 3, 2020, BTC did not fall as sharply as it did in 2011. At that time last year, the mining difficulty dropped by 16.05%, and the computing power was around 120.12 EH/s.
Generally, the increase in difficulty of BTC is greater than the number of declines in its life cycle. At the Bitcoin block height of 685,440, the mining difficulty of BTC dropped by 15.97% on May 29, when the computing power was about 150 EH/s.
Block time is expected to be stable and computing power is expected to increase
With today’s 86.5 EH/s computing power and the current difficulty of 19.93 trillion, the average block time exceeds ten minutes. After the Bitcoin difficulty changes on Saturday, the time between blocks should smooth back to an average of nearly ten minutes.
Since June 29, the computing power of BTC has increased significantly. The 30-day computing power statistics show that the computing power of the network on that day was only 66 EH/s. Saturday’s difficulty change is not only a milestone, but it will also make it easier for miners to continue adding resources.
What do you think of the changes in mining difficulty that will occur on Saturday? Please tell us your thoughts on this topic in the comments section below.
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