Bitcoin network underwent its highest mining difficulty adjustment to date with a 28% decline. The mining difficulty adjustment comes at a time when the network hashrate has fallen by over 50% owing to an exodus of Chinese miners from their country in light of government crackdown.
China was the epic center for Bitcoin mining, accounting for the majority of the network’s hash rate input. However, the recent strict crackdown has led to the shutting down of some of the biggest mining farms in the country. This sudden blackout from Chinese miners had led to an elevated block generation time where the average time reached over 20 minutes compared to the usual 10 minutes, Bitcoin network also recorded its second-highest block generation time a couple of days back when block 689301 took 139 minutes to mine.
The prolonged block generation time and lower miner input had also led to a significant decline in mining profitability over the past month for Bitcoin as well as Ether. Bitcoin miners saw their profitability in June reduce by 42% compared to May while Ether miners saw their mining profitability deplete by 52%.
Latest Mining Difficulty Adjustment Would Make Miners More Profitable
The Bitcoin network’s mining difficulty was designed for days like these and the latest 28% decline in difficulty would bring down the block generation time close to 10 minutes. Apart from improving on the Block generation time, the latest difficulty adjustment would also make American miners more profitable.
The shutdown of Chinese Bitcoin mining farms followed by the biggest mining difficulty adjustment is being portrayed as one of the most historical days in the Bitcoin network’s history. This is mainly because the Chinese miner’s exodus has made the Bitcoin network more decentralized. The move would also push for cleaner mining as countries trying to lure Chinese miners have better regulations in place.