Bitcoin (BTC) underwent its largest negative difficulty adjustment in nearly 10 years on November 3 when the network took care of itself flawlessly.
Data from monitoring source BTC.com shows that bitcoin hardship automatically changed 16% on Tuesday.
Complexity vanishes the most in nine years
It was previously estimated that the adjustment would be around 13%, but this was the second largest in Bitcoin’s history. Only in 2011 the difference was even greater – 18%, which was also at the end of October.
Bitcoin difficulty chart with last drop highlighted. Source: Glassnode / Twitter
Difficulty adjustments are made automatically every 2016 block, allowing Bitcoin to remain a “hard” money regardless of any external factors affecting miners.
This cut encourages more miners to compete for rewards to support the blockchain, causing difficulties increasing again.
However, the next adjustment was estimated at a further -16% at time of publication, indicating that the impact of Tuesday’s events has yet to be felt.
For users, downgrading will reduce fees and block time, as well as reduce the volume of unrecorded transactions in Bitcoin’s memory pool. Earn.com estimates that optimal bitcoin transaction fees are still as high as 80,000 satoshi ($ 11).
Bitcoin Mempool 2-Month Volume Chart. Source: Blockchain
BTC price is unaffected
The commentators seemed a little worried, rather than praising Satoshi Nakamoto’s determination for network security and fund safety.
“There is no better aspect of #Bitcoin than the difficulty of adapting. Imagine the beautiful design of the mechanism,” summed up Travis Kling, founder of Ikigai Asset Management.
Meanwhile, the bitcoin hash rate appeared to drop sharply on Tuesday, and the weekly computed rates began to rise.
Hash frequency lets you see how much processing power has been devoted to validating Bitcoin transactions. A week ago, that number was at a record high, but fell by about 25% in the second half of October.
At press time, the impact on Bitcoin’s price development was minimal, with $ 13,000-13300 remaining in support, while BTC / USD was hovering around $ 13,500.