Destroy kryptonite: mining becoming increasingly difficult and will soon die

“Every year mine Bitcoin is becoming increasingly difficult. Mine had 5 years ago or even 2 years ago. Now this just makes no sense, because complexity is growing”. Such statements are heard from every alley, and even long-familiar with cryptocurrencies people. The constant increase in the difficulty of mining Bitcoin is a myth, that statement is incorrect. Let’s get on your toes consider it a fallacy.

The contents

How is the difficulty of mining

In an article on mining in 2019 , we talked about the factors that affect the income of the miner. Price is a fundamental factor in the growth rates of cryptocurrency attracts new miners, and the decline that we observed this year, forcing miners to switch off their equipment. How this changes the difficulty of mining?

Cryptocurrency network adjusts the difficulty of mining depending on the time of finding blocks.

The time unit or just a “time block” is a fixed parameter, and the complexity always under it is adjusted. For example, the network Bitcoin average block time is 10 minutes, whereas in Ethereum, the figure is 14 seconds. If the blocks are faster preset value, the network difficulty rising, if slower it falls.

Source: Unhashed

Consider the following example.


Hasrat network cryptocurrency — 1 Th/s;
on average blocks are mined according to a predetermined time, that is, everything is going according to plan;
suddenly comes a new miner with additional hasraton 1 Th/s, the total Hasrat grows up to 2 Th/s;
the blocks begin to be 2 times faster;
in response, the network increases the complexity to 2 times;
if you take one particular miner, whose power has not changed, he began to obtain 2 times less coins.

When reducing the total mining power, the reverse process — the complexity of the network decreases.

It is a mistake to assume that the difficulty of mining is constantly growing. From August to December 2018 due to falling prices on the stock market the complexity of the main crypto currency fell by 30-40 percent.

At a constant unit time complexity depends only on the total mining power of the network. Network all is equal, will be mining involve one or 100,500 cards. The network will always choose the task so that the time unit was equal to the specified value.

The algorithm changes of Bitcoin

The change of Bitcoin every 2016 blocks. In a perfect world with constant hestate network 2016 blocks should be 2 weeks. Here, specify the time unit of Bitcoin is 10 minutes. Let’s do a simple calculation and check, whether so it actually.

2016 (blocks) x 10 (minutes for 1 block) / 60 / 24 = 14 days

In reality, Hasrat is usually changed. If miners become more, Hasrat grows, 2016 blocks are found faster than 14 days. In the end, the network complexity will be increased.

Source: extremetech

At the end of 2018, the miners started to turn off the equipment, Hasrat gradually decreased. However, it has a lower complexity, because every time 2016 blocks were not for 14 days, and more time.

Please note schedule changes in complexity of Bitcoin. The difficulty drastically changes every 2016 blocks.

The difficulty of the Bitcoin network. Source: Blockchain.com

For one change, the complexity may either increase or decrease 4 times, no more.

The algorithm changes of Ethereum

Change of Ethereum and all other eiropadome coins occurs every block.

If the time unit is in the range from 10 to 19 seconds, the complexity of the network will not change. If the search unit takes less than 10 seconds, the difficulty will increase. If the process takes more than 19 seconds, the network difficulty will drop. The change of the complexity is proportional to the deviation from the specified range.

Look at the graph changes complexity of Ethereum. The graph is smooth, because the difficulty change constantly, each unit.

The complexity of Ethereum. Source: Ethescan

The average time in Ethereum is equal to the average value in the range from 10 to 19, namely 14.5 seconds.

The complexity of Ethereum is also affected by the so-called “bomb of complexity”, which was activated at the block at number 200 000. The larger the block number, the harder it is to mine Ethereum. So about the currency just to say that the complexity of mining is growing. However, this growth is rather insignificant, moreover, the Ethereum developers have repeatedly changed the time of the block and its relation to “bomb difficulty”, so for the moment do not take it into account.

How was born the myth of ever-growing complexity. Halving

All cryptocurrencies started with Bitcoin. The number of bitcoins that should be issued is 21 million. The miner’s reward for found block are constantly decreasing. This process is called alingam, from the English “Half” is “half.” Every 210,000 blocks — about 4 years — the Bitcoin network is halving, reward for 1st block reduced by 2 times.

Today, the miners receive 12.5 BTC per block. The following halving is expected in 2020, the reward per block will be reduced to 6.25 BTC. Accordingly now the day is generated 1,800 new bitcoins, and in 2020 will be only 900 new bitcoins every day. After 4 years the reward will decrease again.

If we assume that Hasrat network constant, the same mining hardware will yield less and less coins. This statement is true. However, such changes occur not gradually, but jumps about every 4 years. Halving does not affect the complexity of the cryptocurrency network. The complexity does not change, just coins in the block becomes smaller.

I hope that now you have become experts in mining. Not yet? Then read articles about mining from our Cryptocurrency of the Bible, and then come to our Telegram chat to discuss the material. Let’s talk!

Bonus. The transaction rate does not depend on Hasrat network

In addition, dispelling another myth: “If the miners will leave the network of Bitcoin or any other cryptocurrency, Hasrat fall, the speed of transaction processing is reduced, and the network will stop”.

Don’t worry, the network of Bitcoin is enough for the existence of even one miner with the “dead” processor. The transmission speed of the coins will be the same regardless of the number of miners in the network can be one miner, and 50 million ASIC.

Source: Worldsmarathons

The increase in the number of mining-equipment merely creates additional competition for 144 block of Bitcoin per day. By the way, the more Asimov, the safer the network, the harder it is to attack.

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