Bitcoin mining difficulty down 16% as fear spreads in China

The mining difficulty to extract bitcoins has been reduced by 16% since the last adjustment that occurred during the night of this Saturday, May 29. This period of difficulty opens up a new possibility for Taproot to be activated. Meanwhile, the hash rate continues to fall considerably, as a result of various events that have originated in China, where measures are being taken to combat digital mining.

The difficulty currently stands at 21.05 T, according to Coinwarz data. It is a significant reduction compared to the previous setting which happened on May 13. How reported CriptoNoticias At the time, it was one of the largest adjustments recorded in bitcoin history, leaving the network’s mining difficulty at all-time highs.

The current fall too exceeds that of May 2, when it fell by 13% considered, on that occasion, as the biggest percentage stumble of 2021, which occurred after power outages in China that disabled an unknown number of local miners.

The reduction in difficulty can be translated as good news for bitcoin miners. This is because it would now be easier for them to complete the task to obtain their rewards, although it is also necessary to consider the hardware that each one uses and the computational power that they have the capacity to generate.

Bitcoin is designed to churn out one block every ten minutes and automatically adjusts to the new hash rate every 2016 blocks. In this last period from May 13 to 30, the processing power of the network has fallen in relation to the previous period and actually it’s found at 160.58 EH / s, a slight rebound from the rate of 150.48 EH / s recorded at the time of the new mining difficulty adjustment.

The new difficulty adjustment of the Bitcoin network occurred overnight this Saturday, May 29, falling 16%. Fountain: coinwarz.com

This new period of difficulty also brought with it a new opportunity for the miners of the network to continue emitting signals in favor of Taproot, the scalability solution of Bitcoin which is awaiting activation. Currently the signaling indicates that 98.10% of the hashrate is in favor. If this continues, the protocol will be activated anytime before the next network hardship period.

China puts a brake on Bitcoin mining

The fluctuations in the hash rate have been taking place on the basis of the concerns that have spread in China since it is known that the government is preparing measurements against Bitcoin mining. The Inner Mongolia region has already published a document in which it contemplates rules to punish the extraction of cryptocurrencies.

It is presumed that the cities of Xinjiang and Sichuan, northeast and southwest China, may soon announce similar measures, taking into account that they are settlements of large cryptocurrency mining farms. Although the loss of processing power can be due to several causes, the drop in the hash rate is associated with what is happening in this country, taking into account that a large part of the main Bitcoin mining groups are from China.

In fact, some reports indicate that many miners turned off their machines to settle in other regions. The miners may be migrating to the Sichuan region, where the rainy season would begin, providing them with enough hydroelectric power to operate non-stop and at lower cost.

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