Sentences with phrase «mining difficulty means»

However, increased mining difficulty means that it is harder to increase the supply of the cryptocurrency, which, when compared to rising demand, may cause an upward movement in the price of the cryptocurrency.

Not exact matches

However, the relatively low difficulty of Litecoin for much of the last year combined with what had been a smaller mining community means that some early miners may hold large concentrations of Litecoin.

I think you mistake the historical trend of adjustments to the bitcoin difficulty generally being upward, with the actual mechanism where the difficulty is adjusted to keep the global mean - time - to - valid - block constant, because of the other historical trend of mining power going up.

This would in turn means that the block rewards would be even less valuable, difficulty would needs to be even lower for miners to hop on, and miners would be able to mine the 2016 blocks even faster next time.

Of course, the genius of the Bitcoin protocol means that as hashing power decreases, difficulty adjustments take place which make it easier to mine the coins and verify the transactions again.

This means that the mining difficulty will be adjusted in a similar way to that of Bitcoin such that no more than 21 million coins can ever be mined.

Initially, a low mining difficulty indicates that a cryptocurrency is easy to mine, which means that it is easier to increase the supply of that cryptocurrency, which would place a down pressure on its price.