The difficulty of Bitcoin mining is recalculated every two weeks and, due to the drop in the network hash rate after the mining bans in China, the indicator will decrease by about 20%.
Difficulty recalculation will take place at block 689,472, which will be produced in about five days. The rate is expected to decline by 21%, and this is the largest decrease in difficulty in the history of Bitcoin. In addition, this will be the third drop in mining difficulty since December 2018. The indicator decreased on May 30 by 16% and on June 14 by 5%.
Due to the drop in hashrate, blocks in the Bitcoin network are now mined in an average of 12 minutes 55 seconds. However, it was originally assumed that blocks would be mined every 10 minutes. Reducing the complexity of mining will allow you to return the indicator to the planned time.
Recall that the Chinese authorities began to prohibit the mining of bitcoin due to concerns about the unfavorable impact of mining on the environment. According to the founder and CEO of the Russian company BitRiver Igor Runets, after the start of the bans, the demand for the company’s services has grown significantly:
“The number of requests to place equipment on our green sites has grown significantly since the bans on mining in China.”
Note that the mining bans in China have led to a decrease in the hash rate not only in the Bitcoin network. The metric on the Ethereum network also fell by 20%.
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