On Monday, bitcoin’s mining difficulty adjusted itself down by 7%, making it easier for miners to solve algorithms, and thus mine blocks. As to why this occurred, it appears to be in conjunction with bitcoin’s recent price drop. Mining difficulty is set to reconfigure itself every 2016 blocks, or roughly every two weeks. Difficulty modulates based on how long it took for miners to discover the previous 2016 blocks. If it takes longer than two weeks, the difficulty is tuned down, and vice versa.
Indeed, bitcoin’s hashrate recently dipped to around 90 exahashes per second (EH/s) from a previous high of 100 EH/s. China – known for both bitcoin mining, and its cheap electricity which supplements the former – has been witnessing a gradual end to its rainy season. This, for Dovey and many others, is one of the prime reasons for the falling hashrate.