Bitcoin’s mining difficulty dropped by 16% on Tuesday, November 3 marking the largest percentage decrease since 2012, data from BTC.com shows.
Difficulty currently stands at 16.787 trillion, the lowest level since June. This decrease marks the second largest percentage decrease of all time. This event coupled with Bitcoin’s recent positive price action means miners will enter into a less strained period than the first half of the year.
PC: Bitcoin mining difficulty via BTC.com
In 2020, miners have faced multiple challenges including Bitcoin’s harsh price decline in March, a halving and the COVID-19 pandemic. However over the past few months, Bitcoin’s price has increased while the cost of mining has decreased allowing for a wider profit margin for miners.
Tuesday’s difficulty decrease was unexpected, only 17% of adjustments are negative and higher Bitcoin prices often mean a difficulty increase. Other miners may soon come online to take advantage of the profitable period for miners, so the industry may see a difficulty increase in coming weeks.
By Emily Mason