Big drop in the daily generation of Bitcoin blocks
As we have already explained in BitcoNews, halving is an event that is repeated every four years and every time it is executed, the reward that miners receive for each block mined is reduced.
The halving effect
On May 12, one of the most important events for the Bitcoin network occurred: halving. As we have already explained in BitcoNews, halving is an event that is repeated every four years and every time it is executed, the reward that miners receive for each block mined is reduced. It is known that halving causes, in the short term, a destabilization of the hash rate (mining power) due to the fact that some miners who do not have the best equipment or conditions are forced to disconnect their equipment.
According to data presented by analyst "digitalik.net", on May 18 only 95 blocks were generated on the Bitcon blockchain and explained that: "In the last 10 years, we have had only 8 days with less than 100 blocks generated" . The analyst says that halving has caused many miners to be forced to migrate to other networks that are still profitable: "Many miners cannot make a profit now, because their expenses remain the same and their income is cut in half" . After halving, the daily generation of BTC blocks fluctuated between 100 and 120 blocks.
Bitcoin's hash rate adjusts automatically every 2016 blocks and is designed so that the generation of a block takes approximately 10 minutes. The analyst is not optimistic with the idea that in the next recalculation the speed of block generation will return to normal and he stated: “I do not think that the difference adjustment will return to 10 min / block. Because the adjustment is made based on the average of the entire period (since the last adjustment). And that average is not an actual current image as it also includes a week before halving. On the other hand, if the price rises above $ 10,000 and continues to rise, some of these miners will be able to swap their equipment again and increase the hashrate."