Since the third Bitcoin (BTC) halving event took place on May 11, 2020, the hash rate of the most popular cryptocurrency has been falling in a downtrend. The main issue related to it is due to the fact that rewards were reduced by 50% and difficulty remained the same. Now that the difficulty for miners has adjusted, miners are entering once again to the BTC network.
Since early May, Bitcoin’s network difficulty fell by around 15%. This allowed new miners to enter the market and increase Bitcoin’s security. The next difficulty change is expected to grow once again. The last time that it registered an increase it was on May 05, 2020, when it increased by 0,92% compared to the previous adjustment.
Bitcoin Hash Rate Recovers
Bitcoin’s hash rate has been recovering in the last few days as new miners continue to enter the market after a halving event in the second week of May. Users are securing the Bitcoin network once again and trying to improve the entire ecosystem.
It is worth mentioning that Bitcoin experiences a halving event every around four years and it reduces the new issuance of Bitcoin by half. That means that if we keep prices stable and without any change, miners would be 50% down in terms of earnings. Of course, miners do not always have to sell all their coins in order to remain profitable, but the threshold to remain in the market was certainly reduced.
This is why many miners had to leave the space and wait on the sidelines until a new difficulty upgrade. This can be seen in the total hash rate chart where miners turned off their machines. The 7-day average hash rate for the Bitcoin network is showing the same levels as the BTC network registered in the last months. However, if it continues growing, we may see a new all-time high in the coming weeks, which would definitely be a surprising thing for the entire market.
This shows Bitcoin remains a profitable cryptocurrency and the most secure blockchain network in the world. This recovery in hash rate was possible due to Bitcoin’s difficulty falling for the second consecutive time in a row: 6% down on May 20th and 9.29% down on April 4th. This is the first time since December 2018, when Bitcoin fell below $3,200, that there are two consecutive days of difficulty adjustment downwards.