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).
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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…
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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.
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