Bitcoin's Mining Difficulty Sees Largest Percentage Drop Since 2011

China's Dry Seasons and Fall of Hashrates

Data aggregated by BTC.com shows that the mining difficulty dropped to 16.787 trillion on November 4, 2020, its lowest level since June. This marks the second-largest mining difficulty percentage decrease of all times.

The current mining difficulty drop comes amid Chinese mining companies turning down their mining devices while relocating for cheaper energy sources. This usually happens during the end of China's rainy seasons and miners searching for cheaper hydroelectricity amid the dry seasons.

The current mining difficulty drop had spiked up BTC’s hash rate from 114 EH/s yesterday to 97 EH/s today. At the publishing time, the hashrate of BTC is somewhere between 100 EH/s to 107 EH/.

With a spiked up hashrate, it becomes difficult to mine for Bitcoins while a decreased hashrate makes it easier to compete for Bitcoin mining. Hashrate provides an idea of how much computing power is needed to mine for a Bitcoin validation.

A few weeks earlier the hashrate was at its all-time highs followed by losing around 25% during October 2020.

Further Mining Percentage Drop

Mining difficulty is essentially a relative measure of the number of resources required to compete for bitcoin blocks on the given day. This gives an idea of how difficult it is to mine for a new block. The mining difficulty keeps changing based on two weeks intervals or 2,016 block periods.

Data from BTC.com suggests that the next change is more than 14 days away with a probability for a further drop to 14.05 trillion. The current hashrate speed of today shows there might be another -16 percentage drop on the mining difficulty radar.

At the time of publication, there have been no after-effects on the dropped mining difficulty with Bitcoin's price performance.