Bitcoin mining difficulties continue to break records despite BTC’s efforts to break above the $30,000 resistance level. The leading coin has attracted interest from miners in recent months thanks to the price recovery observed since the turn of the year.
Bitcoin mining difficulty hits up-to-date record
Bitcoin mining difficulty reached an all-time high on April 6, 2023, following the latest adjustment to mining difficulty on the blockchain network. Mining difficulty increased for the fourth time in a row and reached 47.8 trillion, an raise of 2.3%.
Bitcoin mining difficulty is automatically adjusted every 2,016 blocks – or about two weeks – to maintain a 10-minute block creation time. There has been a steady raise in mining difficulty in recent weeks, with the last downward trend recorded on February 11.
One consequence is reflected in the hash price, which is the rate of profit that miners make from the hashrate they contribute to the Bitcoin network. Theoretically, greater mining difficulty leads to a lower hashish price. This is because more miners are contributing computing power than usual, leading to greater competition for the rewards the Bitcoin network provides to miners who produce up-to-date blocks on the network.
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Furthermore, Bitcoin’s hashrate or processing power can indicate the difficulty of mining. At the time of the mining difficulty adjustment that preceded the last one, the BTC hash rate was at an all-time high, which led to an raise in mining difficulty.
However, this has recently changed and hashrate has dropped by an average of 20 EH/s this week. It is critical to note that Bitcoin hashrate varies as measured by different sources. For example, BTC.com puts this metric at 338 EH/s memory this puts it at a slightly higher level of 347/EH/s
Bull market The main reason for the increased difficulty in mining
Bitcoin has appreciated by more than 50% since the beginning of 2023, leading to calls for a bullish market. Not surprisingly, this positive trend has led to many miners reconnecting their hardware after a arduous 2022.
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The collapse of Terra Luna and the subsequent collapse of FTX led to significant bearish pressure on the market, with several coins seeing their prices plummet. Bitcoin was one of the coins that lost value, leading to a arduous year for miners, with many having to sell their equipment or shut down their operations to stay in business.
However, the 2023 bull run has raised miners’ expectations that the market could head towards previous levels. Nevertheless, the cryptocurrency mining sector is not without its difficulties, and amiable places such as Texas in the United States are planning to tighten electricity regulations, which could soon affect the booming sector.
Featured image from unsplash, charts from mempool and Tradingview.com
