HISTORICAL ADJUSTMENT
The difficulty of Bitcoin mining falls back to levels of 2021
The Bitcoin ecosystem has just registered a milestone that we haven't seen in three years: the largest drop in mining difficulty since 2021. This downward adjustment is no coincidence; it is the direct reflection of the current pressure facing the industry. Here I summarize the key points to understand what is happening:
Miner capitulation: The combination of a drop in the price of
$BTC and the increase in operating costs has forced many miners (especially the less efficient ones) to turn off their machines.
Hashrate drop: Less computing power competing on the network automatically translates to a downward difficulty adjustment to maintain the block time at 10 minutes.
Protocol resilience: Although it may seem like a negative signal, it is proof that Bitcoin's algorithm works perfectly, adjusting to ensure that the network remains functional despite economic challenges.
What does this mean for the market? Historically, these adjustments tend to mark periods of "cleaning" in the sector, where only the strongest players survive, paving the way for greater long-term stability.
#bitcoin #Mining #CryptoNews #BTC #BİNANCESQUARE Do you think this adjustment is the bottom signal that the market needed or will we continue to see selling pressure from miners?