Bitcoin’s mining difficulty has seen a massive drop this week, as the metric slid 12.6% and was the largest difficulty drop in 2021. The mining difficulty decline follows the recent electrical outages in China which had affected the network’s hashrate to some degree. Following the difficulty drop, Bitcoin’s hashrate is climbing northbound again nearing the 200 exahash per second zone.
Bitcoin’s Mining Difficulty Drops 12% Allowing the Hashrate to Climb Higher
On April 18, 2021, Bitcoin.com News and a number of crypto publications reported on Bitcoin’s (BTC) hashrate dropping after reports noted that in China the Xinjiang grid is having electrical blackouts. Initial reports estimated the loss of hashrate was above 40% but other reports mention the loss could have been between 12.61% to around 25%.
On April 21, 2021, Coin Metrics’ founder Nic Carter said five-day stats had shown the Bitcoin (BTC) hashrate only lost around 25%. Whatever the exact number may be, BTC’s network hashrate at the very least dropped over 10% or more at that time.
The hashrate drop has made it so the network difficulty has declined making it easier for miners to find blocks. BTC’s difficulty is the parameter the network uses to keep block times steady and consistent.
The mining difficulty is basically the measurement of how difficult it is to find a hash below a given target. When BTC’s hashrate is high the difficulty will increase, and when the hashrate drops like it did in recent times, the mining difficulty will drop. Bitcoin’s network difficulty changes every 2,016 blocks or roughly every two weeks.
Two days ago, BTC’s mining difficulty dropped 12.6% to 20.61 trillion after the large hashrate drop that took place more than a week ago today. The 12.6% decline is the largest difficulty drop in 2021 and after the metric changed, hashpower started kicking into high gear.