Bitcoin has 1st downward difficulty adjustment since June '15, Hashrate Stabile - page 2.

aso118

legendary

Activity: 1918

Merit: 1012

★Nitrogensports.eu★

Quote from: BitHodler on March 06, 2016, 01:54:01 AM

It is more than normal that the difficulty has gone down.
Just look at how much it has increased the last months. It is insane.
The price of $400-$450 does not really justify a difficulty this high.
If we stay around the $390-$420 for another month, then I can see another difficulty decrease coming.

Once people have invested in miners, they just have to evaluate the electricity cost vs the price of bitcoins they get.
They may not invest in new miners, but their existing miners will keep running.
Once the price increases (and people feel that it will remain that way), we may see some more investment in miners and then the difficulty will go up.

BitHodler

legendary

Activity: 1526

Merit: 1179

It is more than normal that the difficulty has gone down.

Just look at how much it has increased the last months. It is insane.

The price of $400-$450 does not really justify a difficulty this high.

If we stay around the $390-$420 for another month, then I can see another difficulty decrease coming.

Za1n

legendary

Activity: 1078

Merit: 1011

Could it be some form of preparedness for the upcoming block reward halving? I was reading an article somewhere where there was a concern there might be a sudden shutdown of mining power after the halving as the reduced reward would not offset the expenses for many miners, assuming the price does not rise enough to compensate. If this were to occur too suddenly, we would end up in a situation with difficulty too high for efficient solving of blocks, and thus drag out the time between blocks to unacceptable levels. Or maybe some miners are already being squeezed by the increased difficulty and the falling price and were thinking of shutting down during the halving anyway, are just getting an early start.

bitcoinmarkets

member

Activity: 103

Merit: 10

www.bitcoinfuturesguide.com

Every 2016 blocks, bitcoin protocol's difficulty adjusts which determines how much computing power miners need to use to solve the subsequent set of blocks.

And today the difficulty which was 163,491,654,909 dropped 5,064,451,142, or 3.1%, to 158,427,203,767.

Is the market reacting to this at all? It's correlating with a bearflag as we have had price falling:

If anything, the price decline would hurt the difficulty, not the other way around, as the fiat value of the block reward declines, then miners are less likely to throw computing power at the network to chase it. Similarly, as we have doubled in price from the last 6 months in Bitcoin, the difficulty has risen, as the miners are chasing a higher fiat block reward value:

If price continues to fall, it could lead to more pressure on miners and reduced computing power thrown at the network and continued drop in difficulty

see web version here: http://www.bitcoinfuturesguide.com/bitcoin-blog/bitcoin-has-first-downward-difficulty-adjustment-since-june-2015-as-hashrate-stabilizes

Topic: Bitcoin has 1st downward difficulty adjustment since June '15, Hashrate Stabile - page 2. (Read 1627 times)