Bitcoin mining difficulty has seen its biggest downward correction in history as it drops 28%
According to on-chain market analyst Glassnode, the 28% drop is the biggest adjustment in Bitcoin’s history. The most recent drop now sees Bitcoin’s total hash rate at around 87.6 TH / s. The decline means the overall hash rate is now at a 19 month low. The last time the hash rate was this low was in December 2019.
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Last week, the total hash rate hit a new yearly low of 101.9 TH / s. The overall hash rate has continued to decrease, however, with the massive 28% adjustment dropping the hash rate dramatically.
On-chain analyst Willy Woo commented on the latest adjustment, referring to the largest downward correction in history, the “miners surrender.” Woo also blamed China for the continued downward trend in the mining hash rate.
The country has taken extreme measures to get rid of bitcoin mining operations in the country. The mining ban has resulted in an exodus of mining companies that have been relocated to the sea or closed entirely as China turns its attention to its central bank digital currency (CBDC).
Bitcoin inflation is at its lowest level in history
Glassnode also previously reported that Bitcoin’s rate of inflation recently hit 0.71%, which was the lowest rate of inflation in history for the cryptocurrency. This can be attributed to the drop in hash rate power. Blocks continue to be mined more slowly as large amounts of hash power come from the network.
Bitcoin miners are currently looking for new locations to continue mining operations. The US and Kazakhstan appear to be the most favorable locations for miners from China. Miners have already started moving to Kazakhstan, and the country recently announced new electricity surcharges for incoming miners as well.
Texas also appears to be an important location for miners looking to continue their activities. Texas offers low electricity prices with a pro-crypto outlook. Something that could benefit new mining operations.