The summer of 2025 has been significant for the Bitcoin ecosystem: instead of its price, the mining difficulty reached new heights. This article explores the key aspects related to the changes in the cryptocurrency world.
Record Mining Difficulty
By the end of July, Bitcoin mining difficulty reached a record 127.6 trillion, according to CoinWarz. This indicator reflects the network's competitiveness and the increased computational power needed to secure the protocol. Difficulty temporarily dipped to 116.9 trillion in June, but reversed to climb again by mid-July. The next adjustment is scheduled for August 9, which is expected to lower the difficulty to around 123.7 trillion due to the average block time exceeding the target of 10 minutes.
The Role of Mathematical Scarcity
Bitcoin is characterized by its mathematical scarcity. According to the stock-to-flow model popularized by analyst PlanB, the current ratio of Bitcoin stands at about 120, significantly higher than gold's approximate ratio of 60. With 94% of its supply already mined, the room for new coin creation is becoming increasingly limited. Mining difficulty plays a critical role in regulating supply, thus preserving scarcity and, ultimately, Bitcoin's value.
Profitability and Market Paradox
Despite the record mining difficulty, Bitcoin's price fell by 3% at the end of July, presenting a paradox: the network is safer than ever, yet the market remains unstable. Analysts point to a temporary decoupling between scarcity signals and market prices. In South Korea, increased demand is reflected in the Kimchi premium, reaching 0.84%. Nonetheless, miners' revenue remains at $57,400 per exahash per day.
Thus, despite record mining difficulty figures, Bitcoin showcases a dissonance between its economic structure and market performance. Miners adapt and optimize their activities, ensuring the network's security and economic viability.
