• Bitcoin Mining difficulty refers to the difficulty in completing block rewards.
• Bitcoin mining difficulty decreased by 6% on Wednesday. This is when for the first time since halving, adjustment of Bitcoins’ difficulties took place.
• In Chinese Southwestern provinces as the rainy season commences, they have lowered electricity rates to a very small amount of $0.03/kWh.

After the last halving event that occurred on May 11th, miners dropped out to cut their profits. Now, Bitcoin has introduced mining adjustment to attract miners back.

Since the network underwent halving, more than 20 transactions per second of computing power corresponded to the halt. This caused 1.5 million old-vmining machines to stop. Moreover, before halving, the seven-day rolling average was 122 EH/s. Post-event it dropped to 97 EH/s, by over 20%.

Basic insights on the halving event

The halving event happened exactly halfway through the period of the 2016 block difficulty cycle. This has cut short bitcoin rewards form 12.5 BTC to 6.25 BTC per block. Hash rate drop post halving has improved the hash sprint prior to it. Which is why Bitcoin mining difficulty decreased by 6% to $15.14 trillion at 2:00 a.m, UTC on Wednesday. This is when for the first time since halving, adjustment of Bitcoins’ difficulties took place.

The Bitcoin mining difficulty

Bitcoin mining difficulty refers to the difficulty in completing block rewards.  These are set every 14 days. This guarantees that on an average, there is a 10 minutes interval between blocks. The average block interval goes up from 10 minutes when the removal from the network of a large number of miners takes place. This lowers the difficulty, and hence, attracting miners.

With difficulty adjustment, miners that have good equipment and cheap electricity can take advantage of the situation. With less competition, they can earn larger shares of the 900 BTC hit. As of May 1st, 15-30% of computing power was provided by miners who had old models.  At 0-25 Tera hashes per second, it was calculated. Post-halving, these miners may have dropped out. But with cheap electricity, they might survive longer.

In Chinese Southwestern provinces as the rainy season commences, they have lowered electricity rates to a very small amount of $0.03/kWh. This is a tactic to attract mining customers.  Furthermore, to encourage miners, the transactional fee paid to miners has increased and they also earn a fee for every corresponding transaction on the network.