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Analysts at The Block reported the largest reduction in mining difficulty after a recent recount. The parameter is calculated every 2016 blocks and the latest, still raw data, showed a drop of 4.33%.
This is the largest decrease since July 2021, when the complexity of mining fell by 4.81% due to an increase in the average time for mining blocks on the network.
The drop in complexity occurred against the background of relatively stable hashrate indicators, which usually grow for most of the history of the Bitcoin blockchain. Probably, the fall of the cryptocurrency market “knocked out” small miners, as well as the growth in the cost of loans necessary for operational activities.
Now the hashrate is supported by the supply of previously ordered equipment by large farms. The waiting period stretched to six months, but in 2023 a “failure” is possible.
Companies have become less active in buying ASIC miners due to criticism from environmentalists and the uncertainty of legislation. An important factor in the “cooling” is the falling price of Bitcoin, which cuts off large investors from investing in the mining industry.
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