BTC Block Generation Has Decreased Its Speed

Judy Rubio

Analysts report that BTC block generation has decreased its speed – now it has fallen to the lows that we witnessed three years ago. Last weekend showed that the latest halving has influenced the blockchain and its productivity. The BTC blockchain managed to generate no more than ninety-five blocks, which is much less than most experts expected to see this month. The data come from the BTC analyst using a pseudonym and known as digitalik.net.

The report says that in the past ten years the company has had merely eight days with less than one hundred blocks. Many users have tweeted the news and shared their opinions on the reasons that influenced the tendency. The analyst also referred to the period covering the last four months in 2017 and compared the statistics that were published three years ago.

There are a few sources that attribute the low block period to the latest BTC event – halving – and pay attention to the decreased hash rate of the cryptocurrency. They believe that the number of miners who cannot generate any profit nowadays is relatively high. This occurs because users’ expenses are not different from those they previously had. However, their incomes have been reduced in half, which reflects on the results.

Fluctuations and Influencing Factors

Experts refer to the chart that the pseudonymous analyst provided to the mass media outlets. The diagrams illustrate the block generation of Bitcoin occurring daily. The metric seems to fluctuate approximately between one hundred and one hundred and twenty blocks every day right after the halving event. Afterward, we see the figures fall to around ninety-five blocks last weekend.

The speed that the blockchain generates may depend on several factors. One of them is the hash rate. Another reason is the mining difficulty of the cryptocurrency. This kind of explanation sounds valid and quite reasonable. We should also bear in mind that the system adjusts automatically after two thousand sixteen blocks. Additionally, the period during which users can mine one block cannot exceed ten minutes.

On the other hand, analysts express their skepticism and do not believe that the speed will soon come back to normal. According to specialists, the nearest recalculation will not show any change if the cryptocurrency price sets under ten thousand USD.

The majority of market researchers do not expect the coming diff adjustment to bring it back to ten minutes per block. This is because the system carries out adjustments taking into consideration the whole period average starting from the previous adjustment. As a rule, this average does not represent the true present situation because the changes include several days before the halving event.

Another important thing is that the price can sometimes break up over ten thousand USD. The trend can also keep climbing up and then some of the miners are likely to turn their devices back on increasing hash rate.

Other Implications That Followed the Halving

The block reward is twice as low and currently, approximately seventeen percent of miners’ revenue makes up from transaction fees. In around six hundred seconds BTC can average over two thousand seven hundred transactions and the previous assumptions always matter. The BTC blockchain cannot offer over 4.6 transactions per second. We will not solve the issue if we increase the block size. Decreasing the generation time is not efficient, either. It is impossible to raise scalability if you change parameters in the crypto blockchain.