I’ve read a bit about this phenom and apparently it’s a bonus for lower hashraters:
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Yes, the global hash rate is fairly volatile, so while the difficulty does trend up over time, there are often sizeable adjustments downward along the way. I think this will likely smooth out eventually as bitcoin mining becomes ubiquitous (similar dynamic to Bitcoin’s price becoming less volatile over time as its market cap increases).
So since the difficulty will be adjusted down buy about 10% (largest drop in a decade) that should mean that in a mining pool atmosphere you are essentially mining 10% more sats. Less difficult more profitability. That is TLDR.
Theory will be in verification mode…
Wasn’t the 2021 drop something like 28%? I might be remembering it wrong. In any case, yes this is one is one of the big ones.
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Yep…my bad. 1/2 a decade. Glassnode shows biggest drop since 2021.