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@timskintight Simply, it is Bitcoin’s pace keeping mechanism that keeps the blocks as close to 10 minute average time, regardless of changes in the amount of hashrate (competition) on the network at any time.
This way Bitcoin supply issuance will take multiple human lifetimes to complete.
@timskintight Difficulty goes up when blocks avg < 10 mins, and down when blocks avg > 10 mins. The sample period is 2016 blocks(- every 2 weeks).
���Without this difficulty adjust, as more miners compete for rewards, blocks would occur faster and faster and all 21M BTC would already be mined.
◻️952750
11m 12s avg block
113/144 24h blocks
Running a full day worth of blocks slower than target pace, we may have a double digit difficulty decrease is about 5 days.