Bitcoin Mining Difficulty Rises 10%, Sets Recent All-Time High

Data shows the Bitcoin mining difficulty has risen by 10% in the most recent network adjustment and has set a brand new all-time high.

Bitcoin Mining Difficulty Sets Recent ATH Of 37.59 Trillion

The “mining difficulty” is a feature on the Bitcoin blockchain that controls how hard miners currently find it to mine on the network. The explanation such an idea exists, to start with, is that the BTC blockchain intends to maintain the “block production rate” as near a continuing, standard value as possible.

The block production rate is the speed at which miners are currently hashing latest blocks on the network (or more simply, the speed at which they handle transactions). Nonetheless, as this rate relies on the miners’ ability to mine, it could possibly fluctuate each time miners move out and in of the network.

The full amount of computing power that miners have connected to the blockchain is often known as the “hashrate.” At any time when this metric’s value changes, so does the block production rate. But as noted earlier, the network wants this value to not change like this and as an alternative stay around a continuing.

So to treatment this problem, what the Bitcoin blockchain does is that it notches up or down the mining difficulty accordingly. For instance, if the hashrate goes down, miners develop into slower as a consequence of the lesser power available, and thus the block production rate decreases. The network counters this by dropping the issue barely enough that the miners still connected to the chain are capable of hash latest blocks at a sufficiently faster rate.

The Bitcoin network makes such switches in the issue in periodic difficulty adjustments, which happen roughly every two weeks. This whole process is fully automatic, as the issue is an inbuilt feature of the BTC code.

Here’s a chart that shows the trend within the BTC mining difficulty over the past 12 months:

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

As displayed within the above graph, the Bitcoin mining difficulty has sharply risen in essentially the most recent adjustment and has set a brand new all-time high. The explanation behind this sudden 10% increase within the indicator’s value could be seen within the chart for the mining hashrate:

Bitcoin Mining Hashrate

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

From the graph, it’s visible that the 7-day average Bitcoin mining hashrate had declined to pretty low levels not too way back, which kept the issue down. Recently, nevertheless, the metric’s value has rapidly climbed and is around all-time high values now.

It’s for this reason rapid increase within the hashrate that the network was forced to make such a big positive adjustment in the issue.

BTC Price

On the time of writing, Bitcoin is trading around $21,100, up 23% within the last week.

Bitcoin Price Chart

BTC hasn't moved much in the previous couple of days | Source: BTCUSD on TradingView

Featured image from Dmitry Demidko on Unsplash.com, charts from TradingView.com, Blockchain.com

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