Bitcoin mining difficulty
- 1. BITCOIN MINING DIFFICULTY BITCOINMININGSOFTWARE2019.COM PRESENTS WHAT IS IT AND HOW IT WORKS? WHAT IS IT? There are many "noob friendly" definitions of Bitcoin mining difficulty, but I didn't find one that's as easy and simple as it should be. Bitcoin mining difficulty is a measure of how hard it is to mine 1 Bitcoin, or in recent years- how hard it is to mine a portion of Bitcoin. IT'S NOT A CONSTANT BUT A VARIABLE. This means that the mining difficulty for Bitcoin isn't fixed- it changes with the time, and the time is usually around 2 weeks. MINING DIFFICULTY IS CORRELATED WITH THE HASH POWER. higher hashing power means higher difficulty- making it harder to mine 1 BTC. But also, lower hashing power means lower difficulty- making it easier to mine 1 BTC. IN PRACTICE, THE MINING DIFFICULTY ALSO CORRELATES WITH THE PRICE When the price goes down, some miners lose their interest, thus the difficulty goes down as well. When the price goes up, more miners have an incentive to mine, so the difficulty goes up again. WHAT TO DO WITH IT? Once you get the grasp of this Bitcoin rule, you'll be able to consider it while running your mining operation. For example, when price is down not everything is lost- when difficulty goes down as well, you'll earn more of that coin, plus you can hoddle and sell it when the price rise again. FIND OUT MORE AT: HTTPS://BITCOINMININGSOFTWARE2019. COM/BITCOIN-MINING-DIFFICULTY- WHAT-IS-IT-AND-HOW-IT-WORKS/