Bitcoin's mining difficulty increased by 3.6% today, reaching a new all-time high following a record-breaking network hash rate over the weekend.
Mining Difficulty Increase
According to blockchain explorer Mempool, this latest correction, which occurred at block height 860,832, pushed the difficulty level to a staggering 92.67 trillion, surpassing the previous peak of 90.67 trillion set in late July. Mining difficulty in Bitcoin indicates how difficult it is to mine a new block compared to the easiest possible. The difficulty level is automatically adjusted every 2016 blocks (roughly every two weeks) to ensure that new blocks are discovered approximately every 10 minutes, regardless of how many miners are participating.
Impact on Miners
As the difficulty level increases, the computational power and energy required to mine the next block also increases. This recent increase in difficulty reflects the growing number of miners contributing to the network. As more miners join the process, the difficulty climbs, making it harder to find new blocks. Conversely, if the number of active miners decreases, the protocol lowers the difficulty, making it easier for the remaining miners to find blocks.
Hash Rate Growth Prospects
Bitcoin’s hash rate, which measures the total computing power allocated to the network, reached an all-time high of 693.84 exahashes per second (EH/s) on Sunday, a seven-day moving average that points to a robust and growing mining ecosystem even as miners face financial pressures. Following Bitcoin’s most recent halving, miners saw a significant drop in revenue. The seven-day moving average revenue fell from a peak of $72.4 million on the day of the halving to between $25 million and $30 million, forcing less efficient miners out of the market. This decline was reflected in Bitcoin’s hash rate, which fell to an all-time low of $0.04 this month. Despite these challenges, the Bitcoin network’s hash rate has climbed again as surviving operators, predominantly U.S. public miners, installed new capacity, upgraded mining rigs, and consolidated market share.
The increase in Bitcoin mining difficulty and hash rate showcases the network's resilience despite economic challenges and shifts in the mining ecosystem.
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