Bitcoin mining difficulty increases over 20% in a day
Bitcoin’s mining difficulty saw a significant increase in the span of a day. The hashrate experienced a steep surge and mining difficulty rose over 20% on December 29.
Mining difficulty is the measure of the difficulty to find a new block on the blockchain. The bitcoin hashrate registered an increase of 21.6% over a span of 24 hours, according to Blockchain. Mining difficulty has been on the rise since January 2018. The difficulty reached its peak on August 27. The hashrate has since declined by 32%.
Numerous cryptocurrency miners are being forced out of the market as the result of a nasty bear wave that hit the market in November. The bear run caused Bitcoin to fall below $4000. The first digital coin was trading below $4000 for a considerable amount of time as the massive sell-off struck the market.
More than 10,000 Bitcoin miners shut down following the bear rally. Major mining firms including the U.S based Giga Watt Inc announced bankruptcy as the mining difficulty refused to decrease. Also, the bear market forced several mining forms to shut down. Certain mining equipment of Bitmain and Canaan Creative was taken out of the market due to inflated operational costs.
Arianna Simpson, the VC of Autonomous partners, stated that the decrease in the Bitcoin mining difficulty and the shuttering of mining firms is a feature of Bitcoin design.
The fact that miners are shutting down and difficulty is decreasing is a feature, not a bug, of bitcoin’s design.
— Arianna Simpson (@AriannaSimpson) December 1, 2018
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