The mining difficulty of Bitcoin (BTC) saw the second largest drop in its history, with nearly a 15% adjustment this Monday, according to data provided by BTC.com the leading Chinese mining pool.
The hashing difficulty of BTC is normally get adjusted every two weeks to maintain the standard 10-minute mining time of a block. This time has been adjusted for second time since the beginning of the “crypto winter” last month, after this the mining difficulty of BTC is dropping steadily.
Before this, the leading cryptocurrency saw the largest drop in its history on October 31, 2011, with an adjustment of 18% whereas the third adjustment was on mid-October 2011.
This recent adjustment followed after a massive drop in the market, with BTC losing nearly a third of its value since November 2104, as per CoinMarketCap. Many financial experts believe that market collapsed amidst the “terrible” condition of global markets, regulatory pressure and the ongoing hash rate war between controversial Bitcoin Cash hard fork.
Miners are forced to quit due to the decrease in difficulty along with the market panic and devaluation of BTC.
CEO of China-based cryptocurrency mining pool F2Pool Shixing Mao, last September revealed data on the profitability of mining, according to that, for BTC the break-even point was between $3,891 and $11,581 depending on model equipment being used and the on the market. During this time BTC was trading around $6,400.
Last month, just a week after the massive drop in the market BTC was trading around $4,300 Chinese miners reportedly to started selling mining machines by weight as that was more profitable as opposed to price per unit.
As per a post on F2Pool, miners are primarily eager to sell off the older models of mining equipment, including Avalon A741M, Antminer T9, and Antminer S7, as they touched the “shutdown price.”
Although BTC saw a mild recovery in its price and it was trading around $4,000.