The bitcoin mining difficulty is decreasing at its fastest rate in one year

Last week Bitcoin reduced its mining difficulty by 5% - its largest downwards difficulty adjustment in one year. The difficulty is now down 11% from the peak in May.
Source: CoinMetrics, Hashrate Index

The chart shows that the difficulty measures how much electricity is required to mine bitcoin. The higher the difficulty, the longer an ASIC must run to find a block; thus, it will spend more electricity. ASICs differ in their energy efficiencies, and in the chart, we have used the Antminer S19, a relatively energy-efficient model.

The Antminer S19 currently requires 181 MWh to mine one bitcoin. This is down 11% from 204 MWh in May when the difficulty sat at an all-time high.

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