- Bitcoin mining difficulty recently reached nearly 40.0T.
- The increase in network difficulty comes with an increase in price and hash.
The significant rise in Bitcoin [BTC] It was a topic of great interest in the broader cryptocurrency community. Not surprisingly, the price hike seen in other coins and tokens followed the rise in the price of the King coin.
Read bitcoins [BTC] Price forecast 2023-24
Bitcoin network difficulty inch is close to 40.0T
As the price of Bitcoin has experienced a significant increase recently, network difficulties have also increased. Blockchain.com stats showed that the difficulty has been steadily increasing over the past few weeks. At the time of writing, the network difficulty is very close to 40.0T, and the current level is the highest it has been in over a year.
Source: Blockchain.com
Bitcoin network difficulty is a measure of the difficulty of mining new blocks in the Bitcoin blockchain. To keep blocks mined on average every ten minutes regardless of fluctuations in network processing capacity, it makes adjustments every 2,016 blocks (about every two weeks). Breaking a block becomes more difficult as the difficulty increases and vice versa.
Why is it getting more difficult
Adding additional computing power (hash rate) to the Bitcoin network increases the difficulty of the network, making it difficult for miners to solve the cryptographic puzzle needed to mine a block. To keep the average time to mine a block at 10 minutes, regardless of hash rate fluctuations, the difficulty is adjusted accordingly.
Source: Blockchain.com
The current Bitcoin hash rate indicates an increase in computing power. After the hash rate decreased in December 2022, the observed data showed an increase in January 2023, indicating a higher monthly contribution.
The Bitcoin network has seen over 269,000 TH/s as of this writing. The increasing value of bitcoin has been a great incentive for miners to improve their hash rate. As the price of Bitcoin rises, mining becomes more profitable and attracts more miners to the network.
A look at Bitcoin price action
Bitcoin has increased by more than 37% since the start of its rally to its current price. Its price increased by nearly 50% at its peak. At the time of writing, it was down about 4% in the previous trading period and was trading at around $22,900 at the time of writing.
According to the Relative Strength Index (RSI), the market was in an uptrend during the time period, but the line revealed that it had fallen slightly from the overbought area.
Source: TradingView
In addition, despite the zigzag movement on the daily time frame, a support level was forming for the bitcoin price at the time of publication. Support has been provided up to this point at around $22,000.
What is the value of 1,10,100 BTC today?
The potential pros and cons of increasing network difficulties
The network becomes more secure as the hash rate and difficulty increase because it becomes more difficult for an attacker to influence the network. However, mining a block may take longer, which can lead to higher costs and lower profitability.
As of this writing, miners earnings are about $20 million, more than what would have been possible in December 2022.
Source: blockchain.com