Bitcoin mining is about to get a little easier. After four consecutive difficulty increases, the next adjustment will likely see a nearly 5% drop. This means miners will find it slightly less challenging to solve complex mathematical problems and earn Bitcoin rewards.
What is Bitcoin Difficulty?
Bitcoin’s “difficulty” is a measure of how hard it is to mine a block. The network automatically adjusts this difficulty roughly every two weeks to keep block production time around 10 minutes. If miners are too fast, the difficulty increases; if they’re too slow, it decreases. This ensures a consistent flow of new Bitcoins.
The Upcoming Adjustment
The next adjustment is expected this Sunday around 1:30 AM UTC. Recent block times have averaged 10.5 minutes, slightly slower than the target. This slower-than-average pace is why the network will reduce the difficulty.
Hashrate and Difficulty: A Close Relationship
The difficulty adjustment is directly related to the hashrate – the total computing power used by all Bitcoin miners. Recently, the hashrate saw significant growth followed by a sharp drop. This drop is likely the reason for the upcoming difficulty decrease. When the hashrate rises, the difficulty increases to offset the added computing power, preventing a flood of new Bitcoins. Conversely, a drop in hashrate often leads to a difficulty decrease. Some miners may have been forced out due to the previous difficulty increases.
The Price of Bitcoin
Meanwhile, Bitcoin’s price has recently climbed back above $97,500.