US, WASHINGTON (ORDO NEWS) — Bitcoin is based on fine balances, all of the metrics are dependent: the variation of one often leads to the variation of another. After the price of Bitcoin, the back-up computing power, here is the expected fall in the difficulty that has just occurred, except that this time it is particularly significant.
Bitcoin’s difficulty adjustment mechanism
The difficulty is the name given to an arbitrary parameter of Bitcoin linked to the proof of work.
Reminder: miners allocate computing power to solve a computer problem. To solve this problem, they must find a number within the 10 minutes allowed. This duration is an arbitrary condition added in the code: the solution to the computer problem must be found every 10 minutes, not 8, not 12, 10 minutes.
What happens when the computing power put in competition to find this proof varies?
When it increases, the solution is found more quickly: the difficulty increases.
When it decreases, the solution is found less quickly: the difficulty reduces.
So you understand: difficulty is a mechanism that varies over time, depending on the computing power allocated to Bitcoin.
Historical difficulty fall
The famous “Black Thursday” on Bitcoin resulted in a price drop, forcing a whole bunch of unprofitable miners to disconnect their ASICs. Computing power has therefore dropped sharply, as we explained in this Bitcoin article: miners strangled by the fall in prices?
Corollary: the difficulty has dropped proportionately. Where it is historic, it is in the importance of the fall, since it fell by 15%, suddenly.
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