Bitcoin Mining Got 5% Easier After Latest Difficulty Drop: Analysis

Bitcoin mining got 5% easier after the latest difficulty drop for the fourth consecutive time as we can see more in our latest Bitcoin news today.

The latest difficulty drop means that bitcoin mining got 5% easier with mining now is as easy as it was a year and a half ago. Hash rates have been improving over the past month and it hasn’t been this easy to mine BTC since January. BTC’s difficulty level which determines how difficult is to mine the crypto, drop by a further 4.81% today in the latest drop overnight as per the data on BTC.com. To simply clarify, it’s easier to mine BTC pretty much anywhere but in China where it became much more difficult after the government cracked down on the industry and forced miners out of the country and crashing the hash rate. China’s crackdown started in June has sunk the difficulty level by about 7.5 trillion points and on May 30, before the crackdown, Bitcoin mining had a difficulty score of 21.05 trillion and then fell four consecutive times to the current score of 13.67 trillion.

The difficulty of Bitcoin mining was lowered by 4.81%, the fourth consecutive drop, and the difficulty hit a new low since January 2020. pic.twitter.com/3ruvXBETqp

— Wu Blockchain (@WuBlockchain) July 18, 2021

The BTC network calculates how hard it is to mine BTC and how much computational power is required to earn BTC as per the supply and demand of the miners. The fewer miners online it will become easier to mine BTC. The latest correction is less than a fifth of the performance drop-off from the previous one and between June 13 and July 3^rd this year, BTC logged a 28% drop in mining difficulty after the sweep of the miners in China that then went offline. China’s Xinjiang province issued shutdown orders to reveal BTC miners and a few days later, Sichuan’s Ya’an municipality shut down a further 26 mining farms, and then they crashed the hash rate by 17%.

I'm noticing very few people noticing the #Bitcoin hash rate is casually up ~20% in the first two weeks of July.

I've never apologized for making myself rich, and I never will because of moments like this when degen winners leverage buy and losers don't. pic.twitter.com/UbSZb6gBsz

— John Lilic ₿ Ξ ∞ (@JohnLilic) July 17, 2021

According to the University of Cambridge‘s Centre for Alternative Finance and China still accounts for 46.04% of the BTC monthly hash rate which is down 20% since April. At the time of the end of June, Bitcoin’s hash rate started increasing and the hash rate has recovered 20% since. Bitcoiners had to weather the storm that came from China but the network is starting to bounce back. While today’s hash rate of 101.6 EH/s is still 99 EH/s off the network’s previous ATH, it looks like the miners survived the worst.