Following a slowdown on the Bitcoin network, further adjustments are expected to be made to the network tonight.
The slower-than-expected generation of blocks on the Bitcoin network signals a downward adjustment in mining difficulty. A calculation updated today with chain data predicts a drop in difficulty of approximately 8.3% at block 975,744. If this prediction comes true, the network difficulty will decrease from 148.36 trillion to approximately 136 trillion.
The Bitcoin network recalculates its mining difficulty every 2,016 blocks. The goal is to keep the average block time around 10 minutes, regardless of whether the processing power allocated to the network increases or decreases. In today’s measurement, blocks were found in an average of 10.9 minutes. In the adjustment at the end of October, the opposite happened, and the difficulty increased by 5.5 percent as blocks came in an average of around 9.5 minutes.
A lower difficulty increases the probability of a miner finding a block using the same processing power. How this will affect miners’ dollar earnings depends on the Bitcoin price, transaction fees, and electricity costs. According to today’s calculations, the adjustment was expected to take place early tomorrow morning, Turkish time. If the remaining blocks arrive faster or slower than anticipated, both the time and the final rate of reduction could change.
*This is not investment advice.
