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Bitcoin [BTC] it has brought the effects of the war of the hash of Cash Bitcoin and of the prolonged bear market, as it is clearly visible in its rankings of hash rate and mining difficulties. The difficulty of the Bitcoin extraction has fallen about 31.5% from the historical high of December 2017.
The bitcoin is not the only currency to bear the weight of the looming bear presence on the market, but even the altcoins such as XRP, Ethereum and Litecoin have been represented bleeding due to the attack of the &. bear. Also, the short-term party frenzy seems to be over, as all the coins have collapsed and painted red.
The mining difficulty for Bitcoin reached its all-time high in October, residing in that position for quite some time. Now, the difficulty of mining has decreased by a massive 31.50% from ATH, compared to the current difficulty.
Source: Blockchain.com
Although the difficulty has seen a significant decline, the hash rate continues to grow, leaving many fans in a state of confusion as the difficulty and the hash rate are directly related.
The difficulty level is adjusted every two weeks, as a total of 2016 blocks must be drawn, according to the Whitepaper. Thus, the decline in difficulty while the hash rate is increasing is due to the inherent delay in Bitcoin technology.
The Bitcoin protocol is self-adapted and takes into account that when miners abandon mining due to higher break-even costs, the difficulty is reduced and so has the hash rate. To restart the miners again, the reward for the mining sector increases and therefore the balance is maintained.
In addition, people who remain on the chain during these difficult times are rewarded with more blocking premiums. Thus, the drastic drop in difficulty may have attracted the miners back to the market as the price of bitcoin has risen from a minimum of $ 3,122 to more than $ 4,000 last week.
There are people who criticize the algorithm used in Bitcoin. Meni Rosenfeld tweeted:
"The retarget difficulty algorithm in Bitcoin is terrible.It fails to reach its stated goal – 2016 blocks every 2 weeks – in several ways: it is not balanced over long periods of time. algorithm is terrible – there is no indication that Satoshi knows anything about the theory of control, which is essential to design systems like this. "
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