Diving Into Bitcoin's Difficulty Adjustment

Bitcoin difficulty has a cap on its adjustment, so there will be a lag in moving to a new equilibrium hash rate after big price moves. One of the greatest innovations in Bitcoin is the difficulty adjustment. Satoshi built a system that was robust and would endure over time, regardless of the computing power of miners on the network. Every 2016 blocks, or roughly every two weeks, the Bitcoin protocol adjusts the target used in Bitcoin mining. Let's dive deep …