Bitcoin’s (BTC) mining difficulty increases again; Overstock pays taxes in Bitcoin

bitcoin difficulty
The Bitcoin Difficulty is increasing again

Bitcoin’s mining difficulty rate is stabilizing again after three months of decline. From August to early December, the Bitcoin hashrate decreased, which directly affected the difficulty of the network. The price of BTC also reached its annual low during the period.

bitcoin difficulty and hashrate
Source: https://bitcoinwisdom.com/bitcoin/difficulty

As a consequence of the decline in mining power, the network’s difficulty adjusts, making it “easier” to mine Bitcoin. Even with the lower difficulty, many miners were unable to maintain mining activities since it became unprofitable for them. Entire mining farms had to close down their operations.

Miners produce the blocks of the Bitcoin Blockchain. When the hashrate increases, blocks can be found faster and vice versa. The digital asset automatically adjusts the difficulty at intervals of 14 days to maintain a block time of 10 minutes.

The difficulty rate increased throughout 2018. The most significant increase in difficulty ocurred on January 25th, when the difficulty increased by 16.84%. November and December accounted for 60% of the decrease in mining difficulty. The most significant adjustment was recorded on December 3rd, reducing the difficulty by 15.13%. On December 31, Bitcoin’s difficulty increased by 10.03%. This was the most substantial increase since July 29, 2018.

Biggest Bitcoin difficulty drops

The biggest drop in Bitcoin difficulty occurred on November 1, 2011, when the difficulty dropped 18%, followed by a 15.1% drop at the beginning of December.

  • 2011-nov-01: -18.0%
  • 2018-Dec-03: -15.1%
  • 2011-out-16: -13.1%
  • 2012-Dec-27: -11.6%
  • 2011-Mar-26: -9.5%
  • 2013-jan-26: -8.6%
  • 2011-dez-01: -8.5%
  • 2012-May-25: -9.2%
  • 2010-May-20: -7.8%
  • 2018-nov-18: -7.3%.

Overstock pays taxes with Bitcoin (BTC)

After announcing land registration via Blockchain in the U.S. state of Wyoming, e-commerce and retail giant Overstock will be the first major U.S. company to pay part of its 2019 taxes in bitcoin.

According to a statement on Thursday (03) on the company’s website, the multinational declared that the measure is part of the company’s efforts to promote the use of cryptocurrencies.

Focused on blockchain technology, Overstock will take advantage of Ohio government’s invitation. Moreover, in November last year, the government launched a platform for paying taxes with crypto: OhioCrypto.com.

Companies can register and pay their corporate taxes to the government in Bitcoin through BitPay processor. The cryptocurrency is automatically converted and transferred on to the state treasury.

Overstock CEO Patrick M. Byrne said:

“We have long thought that thoughtful governmental adoption of emerging technologies such as cryptocurrencies (when accompanied by non-restrictive legislation over these technologies) is the best way to ensure the U.S. does not lose our place at the forefront of the ever-advancing global economy. We are proud to partner with forward-thinking governments and officials like Ohio and Treasurer Mandel to help usher in an era of trust through technology for our nation’s essential financial systems.”  

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