Bitcoin Mining Difficulty Drops for Second Time in March: So What Does It Mean?

 The mining difficulty in Bitcoin mining has dropped for the second time since the beginning of March. The difficulty ratio, which has been on an uptrend since November 2021, has dropped 1.5 percent since the beginning of this month. Well what does it mean? Why is Bitcoin mining difficulty decreasing?

Bitcoin mining is now a fact of our lives. Investors from all over the world are buying equipment for Bitcoin mining and earning money by trying to decrypt the Bitcoin blockchain However, there is a remarkable situation in this sector at the moment. Bitcoin mining difficulty ( hashrate ) has dropped for the second time since the beginning of March. Well what does it mean? Why are Bitcoin mining difficulties falling? So why has it become easier to make money from mining?

Bitcoin mining difficulty has been rising steadily since November 2021. In other words, the probability of making money from the devices used decreased. However, this difficulty rate first fell at the beginning of March . Now this decline has shown itself once again. The hashrate rate decreased by 35 per thousand and was recorded as 216 EH/s (exahash/second). The change since the beginning of March has reached the level of 1.5 percent . In other words, the probability of a miner digging Bitcoin has increased somewhat. 

Reason for Bitcoin mining difficulty to drop: Energy crisis


Comments on the Bitcoin hashrate drop  were made by Whitt Gibbs, the founder and CEO of mining company Compass Mining . Mentioning that no clear reason could be presented for the decline, Gibbs said that the reason for this decline may be the energy crisis. According to the CEO of Compass Mining, devices whose profitability has decreased due to rising energy costs are being unplugged. This leads to a decrease in the number of devices connected to the mining network. As such, keeping the desired 10-minute time constant for the decryption of encrypted blocks is achieved by reducing the difficulty level.

Here is the change graph of mining difficulty:

Bitcoin Hashrate

One of the effects of the coronavirus pandemic was the disruption of the energy sector In this process, energy costs increased in general. The Russia-Ukraine war also added to this situation. Russia , one of the world's largest energy suppliers , is angry with the whole world at the point of oil with natural gas used in electricity production. The Arabian peninsula , on the other hand, does not care much about the west. You will have those who remember; One of the issues we talked about in the past months was Kazakhstan . As a result of China's prohibitions, the country, which came to the center of mining, caused confusion due to price increases, and the miners were directly affected by this situation . All these developments mean that the miners are unplugging the devices As a natural result of this, the hashrate fell...

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