Bitcoin’s mining difficulty falls 9.29 percent
Bitcoin’s mining difficulty — a metric for the ease by which miners can create new transaction blocks on the network – fell on Thursday.
The difficulty dropped to 13.7 trillion at block 633,024. The fall represented the second-biggest move of its kind for 2020, and the fourth such decline since the start of the year.
The largest difficulty drop for the year occurred on March 26, when the difficulty fell 15.9%.
Thursday’s development follows a 6% fall, which took place on May 20. That particular difficulty reduction was the first to occur after the bitcoin block reward halving, which saw the per-block subsidy drop from 12.5 BTC per block to 6.25.
As The Block’s Celia Wan previously reported, the post-halving environment presents challenges for some miners, especially those that are overleveraged or rely chiefly on inefficient equipment. A difficulty reduction is a signal that miners have left the network, suggesting that the expected exit for some poorly-performing is taking place.