The difficulty for bitcoin is to mine it is very close to 16 percent. That is, it is the second-largest drop in the history of bitcoin. So what does this mean for bitcoin and the network.
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Ho, wait, what’s the difficulty level?
All bitcoin transactions are recorded in the blockchain. Miners to process bitcoin transactions into blocks because of their computing power to work. For ten minutes, add it to a new transactieblok to. Therefore, they will receive a reward in the form of a 12.5 bitcoins.
The more miners there are, the more computing power on the network. However, the general rule remains that every ten minutes a transactieblok to come. Therefore, the level of difficulty in order to mine for about two weeks and can be increased or decreased.
The difficulty level of running this way will always be a bit behind in the total computing power on the network. Below, you can see that the computing power in the same period of time.
However, because this chart has a lot of peaks does not give to the week-long average for a better picture. That you can see below.
The smaller miners turn off their equipment
Why is it that the processing power and, thus, the degree of difficulty has decreased? That probably has something to do with the drop in bitcoin price. The reward for the miners is a dollar value now-more than three per cent lower than at the beginning of march.
The lower price of the older equipment that is impossible for bitcoin to mine on top of the cost of production. Some of the smaller miners, and miningbedrijven to keep the equipment shut down.
However, the sentiment remains still positive. Manufacturer Bitmain new Antminer S19, for example, within 24 hours and sold out. With this equipment, it is possible to make it faster and more efficiently bitcoin to mine. Thus, there is still plenty of demand for new equipment. Perhaps miners are very optimistic about the bitcoin price in the run-up to the bitcoin block halving, which will be in may of this year it is taking place.
In the past, halvings increased the price considerably. Below, you can see how it will work: