Bitcoin difficulty adjustment is almost here: Set to be one of the largest difficulty increases would undoubtedly have a huge effect on the network.
Bitcoin difficulty adjustment
Bitcoin difficulty adjustment is an event that occurs after every 2016 blocks mined based on the mining difficulty of the previous difficulty. The increase suggests that the previous difficulty was too low. Bitcoin difficulty is the number of hashes required to find a solution below a given threshold. Now the Bitcoin network would soon undergo one of its largest difficulty increase at the rate of almost 9 percent increase.
Reasons for Bitcoin difficulty adjustment
If the network’s difficulty is too low, the miners would overproduce coins and disturb the supply and demand equilibrium causing the price to fall. Similarly, if the difficulty is too high the miners would give up and the network would become unstable due to lack of computing power. Read More...