On March 12-13 was truly a day of bloodshed in the cryptocurrency ecosystem: beginners Bitcoin sold with a loss; users loans MakerDAO lost all their savings ETH in the liquidation of provisions, of all liquidations 3994 third, 1462 (36.6%) were implemented with 100 percent discount, i.e., virtually for free, which brought 8,325 million dollars of losses and was a gift to dodgy speculators…
At a time when whales were withdrawn BTC in stable coins, and devalued Bitcoin was the most popular asset for those who accumulate it down, the Bitcoin network experienced a sharp drop in hash rate yet.
When the price fell below $ 4,000, the overhead of the miners were above their income and the miners were forced to shut down their installations so as not to incur losses. The speed of hash fell, in the end, down to the lowest level in history of the network.
According to Glassnode, mining blocks slowed down by 25 percent and accounted for 12.5 minutes, reaching in 2018 in the maximum decline in prices.
The less hash rate, the fewer units produced, slows the network and a corresponding fall in the remuneration of miners.
Thus, the fall in the price of BTC creates a chain reaction regulating element of which is the difficulty of mining.
As you know, in the entire history of Bitcoin network growth was accompanied by growing complexity and increasing the speed of hashing. Over the past few years have seen some of the substantial reductions in complexity.
The current slowdown of the network postponed the date of adjustment difficulties. It is assumed that adjustment will be held on March 25 and will reduce the complexity of extraction of BTC to 14.7 per cent, which can back up and restore the speed of hashing with the profitability of mining. But to maintain the network in a stable and safe condition, you must first restore the growth of Bitcoin.