Bitcoin Blockchain’s Hashrate Difficulty Adjustment to Increase Profitable Mining Operations
While some folks are predicting a bullish cryptocurrency market in the coming year, the current price freefall of many digital assets continues to be a source of worry and anxiety, with many becoming pessimistic about the market.
However, in the middle of this, it is possible that bitcoin might adopt a new adjustment approach in mining to attract former miners and increase its hash power.
This has become increasingly necessary considering the fluctuating allegiance of many miners, particularly in the wake of the Bitcoin Cash (BCH) hard fork split, early in November. A large number of coin miners migrated from ‘little rewarding’ blockchains projects and digital assets, and flocked to Bitcoin Cash now Bitcoin Cash ABC (BCH ABC) to chase double rewards.
Unfortunately, this miners’ exodus triggered a price drop in the value of bitcoin. This resulted in the premier token trading at a humble price of $3200 to $3500 -from its all-time high price of $20,000 in 2017.
Early in November, Bitcoin’s hash rate saw it spike to a huge 60 exahash per second (EH/s). Unfortunately, that didn’t last long, as this was followed by it plummeting to a record low of 35 EH/s. Of course, the freefall adversely affected the entire network causing it to lose almost half of its entire hash rate.
Miners had speculated that the split in Bitcoin Cash Network could lead to some rewards and bonuses—projecting an accumulation of one coin for every old coin that they had— but the reverse has been the case as since there has been reduction in the network’s hashrate.
The consequence of this is seen in the fall in the market value. Sadly, these actions which resulted in bitcoin’s new bottom, also caused many of the miners to seek more profitable and rewarding alternatives.
Many are now embracing new blockchain networks, while those who can’t cope with the current state of the market are selling off their mining rigs –sometimes at 5 cents for every dollar.
Also, the bitcoin network will be carrying out an upcoming adjustment on the network. This, experts have said, will be a difficult adjustment as the network continues to regain more miners and increase its hashrate.
Bitcoin To Increase Hashrate through A Difficult Adjustment
Given that Bitcoin has lost a number of its miners and with decreasing capacity of the hashrate, the network may be making some changes to its current automatic adjustment procedure. In that case, blocks will be designed by default to be minted every 10 minute, placing the network for an adjustment every two weeks.
With that, the network’s hashrate will increase, miners will hopefully flock back to bitcoin and blocks will be easily and quickly found on the network. This will reverse the current system which sees blocks being minted every 10.9 minutes, a situation that causes significant decrease (about 10 percent) in its hashrate.
The readjustment which is expected to commence in the early hours of the 19th of December will reduce the amount of difficulty encountered in mining bitcoin and finding blocks by 10%.
This new measure will not only see many miners return to the network, but also enjoy decent returns on investment.
It is believed that the growth of mining on bitcoin will undoubtedly trigger a new bullish bitcoin trend, resulting in a positive outlook for the coin in 2019.
Earlier reports had estimated that this new difficulty adjustment will serve as a catalyst that will speed up the hitherto sluggish market. It is possible that many investors could be waiting for this, thus putting the market back on track for growth and significant returns.