I'm very much newbie & have almost zero knowledge on mining. Had some researched & I would like to assist newbie so that they can understand how things happen.
- 144 blocks are generated per day, so 144÷24= 6 blocks per hour. It can be lower as well sometimes or even higher. That's why we say average block time is 10 minutes.
- Mining difficulty is measurement of generating of a block. I'm confused here to be honest.
- To keep up the average block times of 10 minutes, mining adjustment happen which ensure the emission rate of bitcoin are not oncreasing/decreasing. For instance; maintaining 144 blocks = maintaining 144*12.5=1800 BTC per day.
- On every 2016 blocks, mining adjustment happen.
- When BTC price increases, number of miners also increases; as a result the difficulty also increases. Because of many miners into the process, I guess block generation get easy. Confused again
I have taken some info from a thread for learning the 5th number question.
Thread- https://bitcointalksearch.org/topic/why-bitcoin-mining-difficulty-is-increased-2344801
No need to be confused, good explanation. - 144 blocks are generated per day, so 144÷24= 6 blocks per hour. It can be lower as well sometimes or even higher. That's why we say average block time is 10 minutes.
- Mining difficulty is measurement of generating of a block. I'm confused here to be honest.
- To keep up the average block times of 10 minutes, mining adjustment happen which ensure the emission rate of bitcoin are not oncreasing/decreasing. For instance; maintaining 144 blocks = maintaining 144*12.5=1800 BTC per day.
- On every 2016 blocks, mining adjustment happen.
- When BTC price increases, number of miners also increases; as a result the difficulty also increases. Because of many miners into the process, I guess block generation get easy. Confused again
I have taken some info from a thread for learning the 5th number question.
Thread- https://bitcointalksearch.org/topic/why-bitcoin-mining-difficulty-is-increased-2344801
More miners = more hashrate = more blocks produced until the next difficulty adjustment (difficulty will be increased to keep the blocktime of 10 minutes in average)
Less miners = less hashrate = less blocks produced until the next difficulty adjustment (difficulty will be decreased to keep the blocktime of 10 minutes in average)
@RaptarX has explained most of the questions already. On the topic of mining difficulty; to my understanding, it is the level of difficulty in finding a block. Miners are required to solve complex computing work, this is the mining difficulty.
That's why it's run on the PoW algorithm; Proof of Work, the computing work verifies the block and also prevents and malicious attempts on the chain. The mining difficulty is adjusted to maintain the number of bitcoins created on average. The difficulty could be increased or decreased. It is done every 2016 blocks
Miners earn a fixed number of bitcoins per block created, regardless of the value of bitcoins at that point. A decrease or increase in price would affect their reward. If the price increases, mining becomes more profitable and attracts more miners and this increases the blocks created, and the mining difficulty is adjusted to balance the rate, so only the miners with the best mining rigs can find blocks. So the cost of mining increases.
Also if the price drops, mining becomes less profitable and miners could drop out reducing the competition and the rate at which blocks are found, the mining difficulty would be reduced, this reduces the cost of mining. So the existing rigs find blocks faster.
In my opinion, the price of Bitcoin and the mining difficulty are interdependent and balance each other.
Exactly. Finally, the most profitable miners will remain. That includes different parts: That's why it's run on the PoW algorithm; Proof of Work, the computing work verifies the block and also prevents and malicious attempts on the chain. The mining difficulty is adjusted to maintain the number of bitcoins created on average. The difficulty could be increased or decreased. It is done every 2016 blocks
Miners earn a fixed number of bitcoins per block created, regardless of the value of bitcoins at that point. A decrease or increase in price would affect their reward. If the price increases, mining becomes more profitable and attracts more miners and this increases the blocks created, and the mining difficulty is adjusted to balance the rate, so only the miners with the best mining rigs can find blocks. So the cost of mining increases.
Also if the price drops, mining becomes less profitable and miners could drop out reducing the competition and the rate at which blocks are found, the mining difficulty would be reduced, this reduces the cost of mining. So the existing rigs find blocks faster.
In my opinion, the price of Bitcoin and the mining difficulty are interdependent and balance each other.
- most important: electricity price
- mining equipment and its efficiency
- expenses for cooling
- expenses for location
- expenses for staff
- expenses for taxes
...
Less profitable miners will shut down when it's not profitable for them anymore.
reason: mojo
Well, that's not enough for a Merit. 
