Miners in the Bitcoin (BTC) network today experienced the second hardest drop since 2008. The mining difficulty level in the Bitcoin network declined from 20 trillion levels to 16.7 trillion levels and decreased by 16 percent.
Bitcoin (BTC) miners use special devices to solve algorithms in the BTC network and as a result generate blocks. If there are too many miners in the network, this leads to increased competition and harder block generation. In the opposite scenario, it is easier to generate blocks and solve algorithms when there is less competition. Mining difficulty is taken to see how easy it is to produce blocks.
An unprecedented decline in nine years
While Bitcoin (BTC) price made its second best monthly closing a few days ago, today there has been a new historical development. This time the development was not related to the Bitcoin price. According to Glassnode data, mining difficulty in the Bitcoin network has decreased by 16 percent with the update made in line with the hash rate today.
We just observed the 2nd largest negative #Bitcoin mining difficulty adjustment in history: -16%
It topped the -15.9% change in March this year.
— glassnode (@glassnode) November 3, 2020
It was announced that this was the second hardest difficulty drop in Bitcoin history. According to these data, there was only one more sharp decline in history, and that was in 2011. In October 2011, mining difficulty fell by a record 18 percent, Glassnode data showed. The Block announced that the record was broken not in 2011, but in 2013, also known as the ASIC period.
The reason for the fall is Chinese miners
The Bitcoin mining difficulty was updated at 11:28 today, according to BTC.com data. Chinese miners are thought to be the main reason the difficulty dropped from 20 trillion to 16.7 trillion.
Bitcoin miners operating in China started to abandon their hydroelectric power plants and switch to fossil fuels after the rainy season in the country ended. During this process, many miners unplugged the device they were using.