After the next Bitcoin mining adjustment, the difficulty of its mining is scheduled to go down by – 21.1 percent. The negative scenario is in play as miners are evacuating from China, the world’s largest BTC computational power contributor. Dylan LeClair predicted in a tweet as more miners leave the network.
Bitcoin miners are reportedly liquidating their reserves to pay for their increasing expenses. These miners are seeing their margins squeezed and are opting to leave the network. Others are on an exodus, moving their operations overseas to Kazakhstan and Texas, and other accommodating locations.
Bitcoin difficulty level adjusts periodically. The adjustment level is based on the circumstances surrounding the market at the time of the adjustment. When fewer miners are working on the blockchain, the difficulty level decreases to make mining easier for the remaining miners and vice versa.
By July 1st, the latest Bitcoin adjustment would take place and is set to hit a negative double-digit figure. This scenario heightens BTC’s sell pressure as the fear and greed index indicated.
What Would Happen if Bitcoin Mining Difficulty Decreases to Almost Nothing?
Judging from the encoded mechanism on the Bitcoin network, a block should be mined every 10 minutes. Miners compete to mine these blocks and to do this, they have to solve some complex puzzles. The puzzles are harder to solve if there are a lot of active miners.
If the mining difficulty on Bitcoin decreases to almost nothing, the block mining time frame would not be affected. However, the security of the blockchain might be at stake. Since mining has become easier, it’d be prone to hackers who can manipulate the blockchain.
However, there are hopes of continued mining as more nations are receptive to immigrating miners. El Salvador even considers using its volcanoes to mine the leading crypto asset.