When it comes to cryptocurrency markets, it tends to be cryptocurrency prices that dominate headlines, along with the opinions of cryptocurrency and financial influencers. However, the cryptocurrency community also consists of those who mine Bitcoin, as well as other cryptocurrencies.
The mining difficulty of Bitcoin describes how difficult it is for miners to “mine” Bitcoin, which requires solving complex mathematical problems. Over the years, the difficulty rate has increased steadily. Even through price fluctuations, and the fact that most of 2018 has been bearish in terms of Bitcoin price – advancements in mining technology have historically allowed for the hash rate to stabilize.
It is clear that is no longer the case. Bitcoin’s network difficulty has decreased dramatically in recent months due to a Bitcoin miner exodus, which many attribute to the fact that Bitcoin broke the $6,000 support level.
The chief analyst of Brazilian cryptocurrency exchange Xdex, Fernando Ulrich, tweeted about the massive drop in Bitcoin mining difficulty. This marks the second-largest drop in Bitcoin mining difficulty in history.
#Bitcoin just had its second largest drop in mining difficulty in history: -15.1%. This is the current ranking:
— Fernando Ulrich (@fernandoulrich) December 3, 2018
Fundstrat Global Advisors estimates that about 1.4 million servers have been unplugged since early September.
Washington-based Salcido Enterprises is led by Malachi Salcido, who has appeared on CNBC before to discuss Bitcoin mining. He believes that this mining exodus is a “flushing out of the market.”. Salcido Enterprises claims to be one of the largest Bitcoin miners in North America.
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He added, “There will be relatively few operations that come out the other side.”