Bitcoin – Biggest Mining Difficulty Drop Since 2011
Bitcoin just had its biggest mining difficulty drop since 2011 and it is moving along like a well-oiled machine
Difficulty sheds most in nine years
“Estimates had previously suggested that the adjustment would be around 13%, but it was the second-highest in Bitcoin’s history. Only in 2011 was there a larger difference — 18%, which also came at the end of October.
Difficulty adjustments happen automatically every 2016 blocks, and allow Bitcoin to remain as ‘hard’ money regardless of any external factors impacting miners.
Such a reduction incentivizes more mining participants to compete for block subsidy rewards, with the result that the difficulty then begins to rise again.
At press time, however, estimates put the next adjustment at another -16%, indicating that the effect of Tuesday’s event had not yet been felt.”