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The data shows that Bitcoin mining difficulty increased by 10% during the last network adjustment and reached a new all-time high.

Bitcoin Mining Difficulty Sets New 37.59 Trillion ATH

The “mining difficultyis a feature of the Bitcoin blockchain that controls the current difficulty for miners to mine on the network. The reason such a concept exists, to begin with, is that the BTC blockchain intends to keep the “block production rate” as close to a constant standard value as possible.

The block production rate is the rate at which miners are currently hashing new blocks on the network (or more simply, the speed at which they are processing transactions). However, since this rate depends on the ability of miners to mine, it can fluctuate each time miners enter and leave the network.

The total amount of computing power that miners have connected to the blockchain is known as “hash rate.” Each time the value of this metric changes, the block production rate also changes. But as stated before, the network wants this value not to change like that and instead stays around a constant.

So, to remedy this problem, what the Bitcoin blockchain does is it increases or decreases the mining difficulty accordingly. For example, if the hashrate decreases, miners become slower due to less power available, and therefore the rate of block production decreases. The network counteracts this by reducing the difficulty just enough so that miners still connected to the chain can hash new blocks at a fast enough rate.

The Bitcoin network makes such changes in difficulty during periodic difficulty adjustments, which occur approximately every two weeks. This whole process is completely automatic, as difficulty is a built-in feature of the BTC code.

Here is a graph that shows the trend of BTC mining difficulty over the past year:

Bitcoin mining difficulty

The value of the metric seems to have shot up recently | Source: Blockchain.com

As the chart above shows, Bitcoin’s mining difficulty rose sharply during the most recent adjustment and set a new all-time high. The reason for this sudden 10% increase in the indicator value can be seen in the mining hashrate chart:

Bitcoin Mining Hash Rate

Looks like this metric has also jumped in recent days | Source: Blockchain.com

From the chart, it is visible that the 7-day average Bitcoin mining hashrate had declined to fairly low levels not too long ago, which reduced the difficulty. Recently, however, the value of the metric has been climbing rapidly and is now around record values.

It was because of this rapid increase in hashrate that the network was forced to make such a large positive difficulty adjustment.

BTC price

As of this writing, Bitcoin is trading around $21,100, up 23% in the past week.

Bitcoin Price Chart

BTC hasn't moved much in the last few days | Source: BTCUSD on TradingView

Featured Image of Dmitry Demidko from Unsplash.com, Charts from TradingView.com, Blockchain.com



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