According to data provided by BTC.com, bitcoin mining difficulty dropped by 5.01%, the biggest drop in a year.
The largest cryptocurrency has already recorded three negative difficulty adjustments in a row. This last happened when the mining industry reeled from a Chinese ban that forced local miners to migrate elsewhere a year ago. In a single adjustment period in July 2021, Bitcoin difficulty collapsed by a staggering 27.94%, which remains the biggest drop to date.
However, the network managed to bounce back in a relatively short amount of time as the US dethroned China as the best place in the world for bitcoin miners.
The latest drop is likely due to the heat wave that recently hit Texas, one of the largest mining centers in the US.
The Bitcoin metric, which is typically updated every two weeks, shows how difficult it is for miners to produce new coins. By adjusting the complexity of the regulator to reflect market demand, oversupply or undersupply of cryptocurrencies can be avoided.
On July 20, Bitcoin’s hashrate, which measures the total computing power of the network, dropped to 189.8 EH/s, the lowest level since the end of February.
Earlier this month, analysts at JPMorgan estimated that the cost of producing one bitcoin had fallen to $13,000.
Even though the price of bitcoin has dropped significantly this year, there is no capitulation of mining.
Credit : u.today