Following China’s harsh crackdown on the nation’s cryptocurrency ecosystem, the Bitcoin blockchain experienced its largest-ever reduction in mining complexity, as the network’s automated stabilizing mechanisms kicked in.
Bitcoin mining difficulty has fallen by 27.94% to 14.36 T. This is the third and biggest decrease in a row, following just an 18% correction in October 2011.
For miners who are still mining, the decline will represent a profit increase since complexity dynamically adjusts for fluctuations in hash rate, providing a boost to mining when it decreases.
Miners are not anticipated to resume their work for several months. During most of that period, the difficulty is expected to rise again as the hash rate rises, resulting in more competitors and energy contending for the same fixed payout.
Meanwhile, the Bitcoin mining sector reached a 56% renewable electricity mix in Q2 of 2021, according to a network survey conducted by the newly formed Bitcoin Mining Council, making Bitcoin one of the cleanest industries in the world, as one of the Council’s founders, MicroStrategy head Michael Saylor, stated.
Saylor expressed his delight that the Bitcoin mining sector has proactively worked together to contribute crucial information to the broader community and visitors, particularly in addressing widespread misunderstandings about the type and magnitude of Bitcoin energy usage.”