The mining difficulty of Bitcoin (BTC) just saw a mighty blow. It was just adjusted by 15 percent on the 3rd of December. This is the second time in history the Bitcoin (BTC) mining industry is experiencing such a massive blow. This was revealed by data released by BTC.com – a major mining pool in China.
The mining difficulty algorithm of Bitcoin (BTC) is usually adjusted once in two weeks in order to maintain the usual ten-minute block time. The difficulty level of BTC mining was adjusted for the second time on Monday since the start of the recent price plunge in the crypto market, after which Bitcoin (BTC) mining difficulty has been steadily declining.
Bitcoin (BTC) Mining Difficulty’s Largest Drop
The largest drop in the history of Bitcoin (BTC) mining difficulty occurred on the 31st of October 2011. The difficulty was adjusted by 18 percent. In mid-October 2011, the third largest drop occurred, the mining difficulty was decreased by 13 percent. The recent adjustment in the hashing difficulty of Bitcoin (BTC) was triggered by the massive crash in the digital currency market.
The recent decline in the crypto market has caused a lot of damage to the industry. A lot of digital currencies are now trading at new yearly lows. Bitcoin (BTC) – which is the largest digital currency in the world by market cap – has lost more than 30 percent of its value since Nov. 14.
Ethereum (ETH) – which was the second largest digital currency in the world – has also lost a considerable fraction of its value. The massive declines in the value of Ethereum have also caused it to lose its position to XRP (XRP). XRP (XRP) is now the second largest digital currency by market cap.
Bitcoin Cash (BCH) was also affected greatly. Bitcoin Cash is even one of the highest losers in the market, with a decline of more than 60 percent since November.
A lot of financial experts and analysts have attributed the recent crash in the market to a couple of factors. Some of the factors are regulatory pressure, the terrible condition of the global markets, and the war after Bitcoin Cash (BCH) hard fork. The panic in the market, the decrease in the value of digital currencies, and the decrease in mining difficulty have forced many miners to quit.
Back in September, Shixing Mao, the CEO of F2Pool – a crypto mining pool based in China – published data on the profitability of mining. According to the data revealed by Mao, the breakeven point for Bitcoin (BTC) was in the range of $3,891 and $11,581, depending on the model and make of the tool being used. Bitcoin (BTC) was trading at $6,400 during this forecast.
Towards the end of last month, when Bitcoin (BTC) was trading around the $4,300 mark, Chinese miners were reportedly selling mining equipment by weight rather than by unit.
Bitcoin (BTC) Price Today – BTC / USD
After a little recovery over the weekend, the value of Bitcoin (BTC) has plunged again. At the time of writing, Bitcoin (BTC) is trading at $3,926 after a decrease of about 2 percent over the past twenty-four