Difficulty Adjustment #321 UTC 12:48:40, Monday, September 7th, 2020
Block 647,136 Difficulty: 17.35 T -1.21%
Avg Network Hashrate: 127 EH/s $0.08 per TH/d
Poolin hashrate 16.12 EH/s
Poolin Workers: 685,765
Welcome to the second issue of the official Poolin newsletter — Network Notes — where we provide cryptocurrency mining analysis, news, and company updates on a bimonthly basis in tandem with bitcoin’s difficulty adjustment.
Bitcoin’s previous difficulty adjustment was 14 days ago on August 24th (block height 645,120) where the difficulty increased by 3.60% from 16.95 T to a new all time high of 17.56 T.
The current adjustment has brought the difficulty down by 1.21% to 17.35 T. Below, in dark blue, is the stepwise function of bitcoin’s difficulty adjustment from March 11th to September 5th.
Looking at the red line, which shows the average block interval over time, we can see at the far right of the chart (since the last difficulty adjustment) the average block time has hovered mostly above the 600 second (10 minute) benchmark, which is why the difficulty has decreased modestly (see more).
This recent downturn in price, in addition to the previous increase in network difficulty, has lowered mining revenue from $0.10 to $0.08 USD per Terahash per day, which particularly squeezes older generation miners running on electricity that costs over $0.03 USD per kWh (consult Mining Profit Estimator here).
Bitcoin’s network hashrate began the last difficulty period at 120 EH/s, oscillating between 120 and 127 EH/s over the last two weeks, but after this latest downward adjustment in difficulty, the hashrate has broken out today above 128 EH/s. While the price of bitcoin has decreased, hashrate has not yet reacted to the downside, although collateral damage from flooding in the Sichuan Basin (covered in the last issue) has continued to affect mining operators throughout this region.
Below you can see a chart of Poolin’s hashrate over the last month, and, as we covered previously, the flooding in and around the Yangtze river basin continues to impact miners. While some mining operations have suffered water damage directly, most of the damage has been collateral due to power and internet outages across the region, which has consequently caused a loss of hashrate.
Last week Poolin VP Alejandro de la Torre participated in a mining panel discussion at the Blockchain Summit 2020 where he covered Poolin’s growing suite of financial products (watch here). As well as the The Pool Boys of Bitcoin | HASHR8 Podcast, check it out here.
In addition, Poolin VP of Finance, Qian Xong, participated in the Open Finance Conference to talk about CeFi versus DeFi from Beijing (watch here in Chinese).
Stay tuned for details on upcoming conferences in Berlin and Chengdu, which are both slated for the end of September.
Finally, you can now find all our products under the Poolin brand, more information here.