In the latest Bitcoin news, we are reporting about Bitcoin and its mining difficulty which has dropped by more than 7% over the past 24 hours as the fallout of the market rout continued. Even though Bitcoin recovered and is now trading above $4,000, a lot of miners are finding it difficult to remain profitable or break even.
In the light of the Bitcoin blockchain’s reduced hash rate caused by withdrawing miners, the network is designed to automatically adjust the difficulty level and therefore avoid a situation where there is a huge transaction confirmation backlog and high confirmation fees.
The 7% drop in Bitcoin mining difficulty is likely to be the start of a similar difficulty readjustment pattern which is in line with Bitcoin’s below $6,000 pattern which increasingly becomes a prolonged reality.
As shown in the above chart, the Bitcoin difficulty fell from about 5.8TH/second to about 5TH/second on December 19th. In contrast to this, Bitcoin Cash and Bitcoin SV are still stable at about 1TH/second.
While the interest in mining Bitcoin is declining, this hasn’t impacted the difficulty in mining Bitcoin Cash and Bitcoin SV. In other words, the miners leaving Bitcoin are not switching to other cryptographically similar cryptocurrencies.
However, the real danger right now is the fact that the existing situation can in itself become an obstacle to mass cryptocurrency adoption in the long term if the downward trend continues. At the same time, a significant upward price movement could change the situation almost overnight.
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