An email from Bitcoin's pseudonymous creator Satoshi Nakamoto, dated November 8, 2008, has been shared by the X account Documenting Bitcoin, providing rare insight into the foundational concept of difficulty adjustment in the Bitcoin network. This correspondence occurred just eight days after the release of the Bitcoin white paper, 'A Peer-to-Peer Electronic Cash System,' on October 31, 2008, during the global financial crisis.
In the email, Satoshi explained how the proof-of-work system dynamically adjusts mining difficulty to maintain a constant rate of new Bitcoin production, regardless of changes in computing power. He wrote: 'As computers get faster and the total computing power applied to creating bitcoins increases, the difficulty increases proportionally to keep the total new production constant. Thus, it is known in advance how many new bitcoin.' This mechanism ensures Bitcoin's supply remains predictable and deflationary, with a fixed cap of 21 million coins, and adjusts every 2,016 blocks (roughly every two weeks) to target an average of one block every 10 minutes.
In related market developments, Coinbase Institutional's report highlights significant leverage clearing from the crypto market after the October 10 liquidation, suggesting a short-term bottom may have formed. The report stated, 'October’s sell-off wasn’t the end of the cycle—it may have been the reset it needed.' Based on options implied distribution, BTC price expectations for the next three to six months are between $90,000 and $160,000, with a bullish tilt. The report also cites potential Fed rate cuts, liquidity easing, and new regulations as medium-term tailwinds, potentially extending the current cycle to 2026. At the time of writing, BTC was trading at $103,228, up 1.02% in the last 24 hours.
ETH
PEPETO
BNB