The difficulty of Bitcoin mining has dropped sharply this week. This indicator has dropped by 12.6%, the biggest drop in 2021. The decline in mining difficulty is due to the recent power outage in China that has affected the network’s hash rate to a certain extent. After the difficulty dropped, Bitcoin’s hash rate climbed north again, approaching the area of 200 exahash per second.
Bitcoin’s mining difficulty dropped by 12%, allowing the hash rate to rise
On April 18, 2021, Bitcoin.com news and many cryptocurrency publications reported that the hash rate of Bitcoin (BTC) has dropped. Earlier reports pointed out that there was a power outage in China’s Xinjiang power grid. The initial report estimated that the hash rate loss was more than 40%, but other reports mentioned that the loss could be between 12.61% and 25%.
On April 21, 2021, Nic Carter, the founder of Coin Metrics Say Five days of statistics show that Bitcoin (BTC) has lost only about 25% of its hash rate. Regardless of the exact number, BTC’s network hash rate dropped by at least 10% or more at that time.
The drop in hash rate makes it so, so the network difficulty drops, which makes it easier for miners to find blocks. The difficulty of BTC is the parameter that the network uses to keep the block time stable and consistent.
Mining difficulty is basically a measure of how difficult it is to find a hash value below a given target. When the hash rate of BTC is high, the difficulty will increase, and when the hash rate drops as recently, the difficulty of mining will decrease. Bitcoin’s network difficulty changes every 2016 blocks or approximately every two weeks.
Two days ago, the mining difficulty of BTC dropped by 12.6% to $20.61 trillion, and today, a week ago, the hash rate dropped significantly. A drop of 12.6% is the biggest difficulty drop in 2021, and after changing the indicator, hash power has begun to grow rapidly.
The last time the difficulty of large-scale mining dropped was during the first week of November 2020, which was about 16%. According to some hash rate aggregators, on Sunday, May 2, 2021, the hash rate of BTC has climbed to nearly 200 exahash/s (EH/s).
Today, Coinwarz.com statistics show that the hash rate on Sunday has jumped above the 190 EH/s area, and data from Fork.lol shows that the absolute hash rate in Exahash touched three hours ago has reached 204 EH/s. Many other SHA256 aggregators also have similar daily statistics, and all show a jump in BTC’s hash rate since the difficulty dropped.
The top 7 mining pools captured 72% of Bitcoin hashrate
It is worth noting that using hourly or even daily averages to calculate hash rate may not be the most reliable way to measure hash rate data. This is why the lower bound estimate of the hash rate for the most recent power outage in China was obtained a week later. Most analysts will use statistics for 7 days or more to determine absolute hash rate metrics.
At the time of publication, there are 18 Bitcoin mining pools dedicated to the SHA256 hash function on the BTC network. Most of the top ten pools are from China, while the capture rate of the mining pool F2pool is about 29.6 EH/s, accounting for 18.51% of the entire network hash rate.
F2pool is followed by Antpool, Poolin, Binance Pool, Viabtc, Btc.com and Huobi Pool. The aforementioned mining pool controls 72% of the hash rate of the BTC network.
What do you think of the recent decline in difficulty two days ago and the hash rate starting to climb again? What do you think of it? Let us know your thoughts on this topic in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons, Coinwarz, Fork.lol,
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