As per the data provided by the Major Chinese mining pool BTC.com, the Bitcoin (BTC) mining difficulty saw its second largest drop in history with a 15 per cent adjustment on Monday, Dec 3.
The hashing difficulty algorithm of Bitcoin is normally adjusted in every two weeks to maintain the 10 minute block time. Since the beginning of the so-called “crypto-winter” in the month of mid-November, the Bitcoin’s hashing difficulty algorithm has been adjusted for the second time, after which there has been steady drop and difficulty in mining Bitcoin.
Bitcoin has seen its largest drop on Oct 31, 2011, with an adjustment of -18 percent. It had also seen its third largest such decrease in mid-October of 2011.
According to CoinMarketCap, Bitcoin lost more than a third of its price since Nov 14 after recent adjustment of Bitcoin’s hashing difficulty due to massive market drop. Financial experts have stated that the market collapse is due to the regulatory pressure, the hash rate war after controversial Bitcoin Cash hard fork.
The decrease in difficulty has created a market panic. Also, the coin devaluations are forcing the miners to quit. In September, Shixing Mao, CEO of China-based crypto mining pool F2Pool had reported the data on mining profitability.
According to Mao, at that time depending on the make and model of equipment being used, the break-even point for Bitcoin was around $3,891 and $11,581. At that time, Bitcoin was trading around $6,400.
Chinese miners had started to sell their mining machines by weight as opposed to price per unit after Bitcoin’s massive drop to $4300 in late November. The F2Poll post reported, that the miners are eager to sell the older models including the Antminer S7, Antminer T9, and Avalon A741.