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What Does the Bitcoin Mining Difficulty Adjustment Indicate? (When Did the First Increase in Bitcoin Mining Difficulty Occur?)

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The adjustment in Bitcoin mining difficulty indicates an increasing number of m

What Does the Bitcoin Mining Difficulty Adjustment Indicate? (When Did the First Increase in Bitcoin Mining Difficulty Occur?)

The adjustment in Bitcoin mining difficulty indicates an increasing number of miners entering the market as the price of Bitcoin continues to rise. This is an important moment for both mining manufacturers and investors. In the past few months, the demand for adjustments in Bitcoin mining industry has increased due to a significant increase in computational power. Currently, two large mining pools are planning to increase their income by more than 20% to maintain competitiveness.

According to Bitinfocharts website, the “network difficulty” has decreased from “cheapest network” (about 23,000 miles) to “lowest network”. The first increase in Bitcoin mining difficulty occurred twice, the first time was at the end of July last year, and the second time was before the halving of block rewards in mid-December 2017 (when BTC total network computational power was 1.4 million T), followed by another increase in difficulty.

Compared to previous adjustments, this increase in mining difficulty is larger because the computational power of all newly added mining machines is growing. (bitcoin.com)

When Did the First Increase in Bitcoin Mining Difficulty Occur?

Editor’s note: This article is from BlockBeats (ID: blockbeats), written by 0x29, authorized reposted by Odaily Planet Daily.

According to the latest research between Bitcoin miners and mining pools, mining difficulty has increased by more than 10% for the first time in the past three years.

This may not be a coincidence, as historically, this number has been steadily increasing.

In March this year, the Bitcoin mining difficulty reached a historical high of 17,000Mh/S. This is the largest increase since the end of September 2017. At that time, the price of Bitcoin was around $23,000. The “halving” at the end of 2017 was due to concerns about an economic recession, and then the price of Bitcoin soared to $62,000. However, in recent weeks, with the market crash, BTC also plummeted, and as of press time, the price has fallen below $20,000. Now there is less than a month left until the low point of 2020, and the transaction fees of the Bitcoin network have greatly decreased. It is still unclear whether these factors will lead to the closure of cryptocurrency exchanges.

However, if Bitcoin continues to follow the current market trend, the next major driving factor may be mining companies selling their equipment to other industries for profits.

The record-breaking increase in hash rate that occurred last month has put the entire industry in a dilemma: “The average cost of Bitcoin is about 5 exahash per second, higher than before.” Nevertheless, miners are still investing their computational power into new projects to “mitigate” the situation.

Interestingly, the Bitcoin community believes that this adjustment may put them in an irrational state. “We are looking for more flexible alternatives as it requires more energy supply and reduces mining costs. I hope this situation can be resolved,” some supporters said. In addition, some point out that this does not mean that Bitcoin will be completely eliminated in the next year or in 2022.

According to an anonymous source, Bitcoin experienced two difficulty increases on the first day of mining, the first one occurred in the first quarter of 2019.

According to data from Bitinfocharts, in the first quarter, the total number of transactions on the Bitcoin blockchain almost doubled, reaching over 810,000 transactions. This has sparked an increase in demand for its infrastructure, reaching its peak by the end of 2018 and then quickly declining until early November.

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