Bitcoin Mining Difficulty Falls to January Level Making it Easier to Mine BTC
The latest negative adjustment came after the hash rate dropped, yet again, due to China banning crypto mining operations in Xinjiang, Yunnan, and Qinghai last week.
Bitcoin mining difficulty has fallen by 5.3% following a recent drop in hash rate, making it easier to mine BTC.
The mining difficulty of the network, which occurs every two weeks and aims to keep blocks producing at an even rate of 10 minutes, has dropped to 19.9 trillion, a level last seen in early January.
Previous difficulty adjustment on May 30 was also a negative one that kept the hash rate steady.
The hash rate of the largest network first dropped in April, then in mid-May, and yet again last week on the news of China banning Bitcoin mining. On June 10, the hash rate dropped under 100 Th/s but is currently back around 132 Th/s, as per Bitinfocharts.
This latest drop was the result of miners in Xinjiang's Zhundong Economic and Technology Development Zone ordered to close operations in regard to the China State Council commenting about cracking down on bitcoin trading and mining activities.
Investors who sell on China “bans” usually end up bummed… pic.twitter.com/OKlBe9yU9q
— Dan Morehead (@dan_pantera) May 26, 2021
After Inner Mongolia, Xinjiang, the provincial authorities in Qinghai ordered bitcoin mines and banned businesses like data centers, industrial parks, and power stations from providing cryptocurrency-related projects with land and power.
Yunnan, which ranks fourth in China in terms of bitcoin hash rate, has also moved against crypto mining after provincial authorities issued a notice ordering an investigation into the alleged illegal use of electrical power by individuals and companies involved.
The Yunnan Energy Bureau said it would cut the power supply to anyone illegally using electricity for bitcoin mining and such users that evade electricity bills. The authorities have promised to shut down any company in violation of the new rules by the end of June.
Following the crackdown, major Chinese pools recorded a plunge in hash rate. Meanwhile, more and more miners are moving out of the country.
Those who are still online will see an increase in their share of the total block subsidies before the next difficulty adjustment in two weeks. Additionally, Bitcoin price has jumped from last week's low of $31,000 to above $41,000 this week.