According to the data of multiple blockchain analysis websites around the world, Bitcoin is about to usher in the largest difficulty reduction in history.

Since the beginning of June, Bitcoin’s overall hash rate has dropped by 41%! According to data from websites such as BTC.com and Glassnode, the difficulty of BTC mining will be adjusted in four days (about July 3). 25%.

Throughout the entire history of BTC development, its computing power growth trajectory is almost "forward and upward" throughout its entire life cycle. While troughs do occur occasionally (such as in Q4 2018), they are rare.

However, 2021 is destined to be a special year. Compared with the past few years, the continuously declining computing power has seriously deviated from the previous growth trend. MiningPoolStats data shows that last week, Bitcoin’s entire network computing power fluctuated between 80-90 EH/s, far lower than the 150 EH/s at the beginning of the year.

The price of bitcoin has fallen sharply since the market peaked in April. Bitcoin’s hashrate follows closely behind, but its decline has been relatively gradual. From historical data, BTC computing power almost always changes with price changes.

However, there are some exceptions to the current situation. This time, the price and computing power of Bitcoin have dropped, and the direct reason is the crazy shutdown of my country's supervision and mining centers such as Sichuan. The price drops again and again will reduce the profit margin of mining itself, and will also lead to shutdowns and a further decline in the computing power of the entire network.

At the current price and difficulty level, BTC mining is easier than in the first half of this year, which means that miners can make more profits mining Bitcoin, and the profit will be more considerable after the difficulty is reduced. Therefore, lowering the difficulty will stimulate more machines to go online, thereby stretching the computing power again, and even affecting the price.

Due to the new regulatory policies, the computing power of many top mining pools in the world has also declined, especially in China. Sichuan fell, and the United States was full. Foundry, an American mining pool owned by DCG, the world's largest encrypted asset company, has seen a significant increase in computing power recently.

When prices and hashrate will start to rebound is an open question. How to judge the market direction in a bearish environment? Remember: FUD affects price, and price affects hashrate.

The huge computing power and difficulty drop, coupled with the global computing power reshuffle under the big stick of supervision, Bitcoin is entering a golden age of mining, and there is no doubt that Bitcoin will become a stronger and more decentralized area. blockchain network. Of course, all of this probably has little to do with Chinese miners.

Willy Woo, a well-known quantitative analyst on the overseas chain, said sarcastically: "I want to cheer for China this month, because it selflessly helped Bitcoin remove the last centralized part of the network, and it and future generations will bear the cost." .”