Bitcoin mining difficulty dropped 16% today, making it easier for miners to earn rewards.
According to Glassnode Studio it is the second largest negative Bitcoin mining difficulty adjustment in history, topping the -15.9% change in March this year. The only other time difficulty saw a larger downwards adjustment -18% was over nine years ago, in Oct 2011.
Bitcoin’s mining difficulty adjusts automatically every 2,016 blocks, which typically takes about 14 days. The difficulty rises and falls based on increases or decreases in hashrate, the metric used to measure mining activity on the network.
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Key Takeaways
- Bitcoin’s 16% mining difficulty drop on Nov. 3 was the second-largest in history.
- Mining difficulty drops are the network’s way of compensating for a low hashrate among other factors.
- The drop has not had a noticeable impact on BTC price action.
- Only the minority of Bitcoin’s mining difficulty adjustments are ever negative, and only 2% are double-digit drops as seen today.