The latest hash rate adjustment on July 3 saw Bitcoin’s mining difficulty drop by 27.94%, the largest negative adjustment in the cryptocurrency’s history, as Chinese miners migrated to other friendlier locations. Not only that, according to btc.com data estimates, the next mining difficulty will drop even more, reaching 28.03%.

Since May 30, Bitcoin’s mining difficulty has experienced three consecutive declines, and there is still no trend of decline, and the hash rate is unlikely to recover significantly in the short term.

The Bitcoin network updates its mining difficulty level every 2016 blocks, roughly every two weeks. This is designed to ensure that a block is produced every ten minutes or so, despite fluctuations in the hash rate.

In the current situation, since the adjustment on June 13, Bitcoin's 7-day moving average hash rate has dropped from 136.47 EH/s to 85 EH/s. This lower hash rate has caused the speed of block production to change. Slow because remaining hash power cannot keep up with high difficulty level adjustments. Over the past two weeks, a block has been generated on average almost every 13.9 minutes, much higher than before.

On July 1st, it even took 129 minutes to produce a block, the longest block time since 2011, although there are multiple factors at play, including inherent differences in block times wait.

Therefore, the continuous sharp drop in mining difficulty in a short period of time will have an impact on the overall security of the network.

This could be good news for unaffected overseas miners, with forecasts predicting a roughly 35% increase in Bitcoin mining profitability in the short term. According to the analysis and estimation of overseas mining companies such as Bitfarms and Argo Mining, this boom period may last for several months.

However, Bitcoin mining is not a simple project. It is not easy to relocate hardware and build a mine, and logistics may take several months. Small and medium-sized miners who are worried about the policy and have no ability to go to sea can basically choose to withdraw directly. This kind of situation accounts for a large proportion, and naturally they will not enjoy the benefits of the vacuum period of difficulty reduction.

Obviously, the encrypted world does not exist in isolation and is still limited by the real world. If you want to enjoy the dividends of the times, you can only accurately grasp the development of the industry and remain invincible for a long time only if you always follow the policy orientation as the yardstick.

Since greatly emphasizing "taking the blockchain as an important breakthrough for independent innovation of core technologies" and "accelerating the promotion of blockchain technology and industrial innovation and development", blockchain empowers the real industry and has become a common concern of national policies and public opinion .

Yihuo.com actively responds to the policy, connects entities in series through blockchain technology, and revitalizes entities with the value of blockchain tokens.

The difficulty of Bitcoin mining continues to decline, which means that many small and medium-sized miners and mining companies have to give up their computing power to large mining companies and lose their living space. However, the blockchain industry policy is always guiding the market, and new opportunities and new dividends are becoming more and more clear!

Bao, let's grasp the development dividend of blockchain together, what dividend? Of course, it is the right time and place, and the benefit of Pepsi!