Bitcoin Mining Difficulty Sees 5th Straight Increase
Bitcoin Mining Difficulty Has Gone Up By 3.55% In Latest Adjustment
The mining difficulty on the Bitcoin blockchain has seen a 3.55% increase in its latest adjustment. This marks the fifth straight increase in mining difficulty as the hashrate continues to rise. The “mining difficulty” is a feature on the Bitcoin blockchain that controls how hard the miners find it to mine on the network. As the value of the mining difficulty goes up, miners have to work harder to solve the next block.
As Satoshi wanted BTC’s block rewards to be given out at a constant rate, no matter the network conditions, the mining difficulty feature was implemented. This is crucial as the block rewards serve as the only way to mint new cryptocurrency tokens into existence. When miners increase their computing power (the “hashrate“), they become faster at mining and start receiving rewards faster, causing the asset’s supply to grow at an accelerated rate. To counteract this, the blockchain ups the difficulty in the next scheduled adjustment whenever the miners increase their hashrate.
The Bitcoin mining difficulty has increased by about 3.55% in its latest difficulty adjustment, setting a new all-time high. This is the fifth straight increase, and there was only one other instance this year with five consecutive adjustments. This relentless rise in difficulty is tied to the unstoppable growth in the mining hashrate, which continues to set new all-time highs. New miners have been coming to the network, and old ones have been expanding recently, possibly in anticipation of a bull market for the cryptocurrency.
At the time of writing, Bitcoin is trading at around $36,800, up 5% in the past week.
– CoinWarz – Difficulty chart: https://www.coinwarz.com/mining/bitcoin/difficulty-chart
– Blockchain.com – Hashrate chart: https://www.blockchain.com/explorer/charts/hash-rate
– TradingView.com – BTCUSD chart: https://www.tradingview.com/chart/qFC1kfFd/
Featured image from Brian Wangenheim on Unsplash.com.
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