Bitcoin mining difficulty collapsed amid "extreme stress" of industry
Another recalculation saw the figure drop by 7.32%, Glassnode analysts called it a reflection of the extreme stress the cryptocurrency mining industry is under
Bitcoin's mining difficulty fell 7.32% to 34.24T after another recalculation. The last time such a drop occurred was in July 2021. At the end of last month, the figure renewed its all-time high of 36.95 T.
Network complexity determines the amount of processing power required to find a new block in the bitcoin blockchain.
1 K = 1 thousand.
1 M = 1 million
1 G = 1 billion
1 T = 1 trillion
With the current reduction, the target complexity value is set at 34.24 T.
This parameter changes every 2016 blocks, or about once every two weeks. This is necessary to maintain a block time of about 10 minutes.
Analyst company Glassnode stressed that the mining industry remains under extreme stress amid falling cryptocurrency prices, rising power costs and companies' credit problems.
Earlier it became known that miners, who raised about $4 billion to buy cryptocurrency mining equipment when its profitability was up to 90%, are now defaulting on loans and giving away hundreds of thousands of devices that served as collateral to lenders,