Bitcoin (BTC) mining difficulty and hash rate have hit its pinnacle. It’s evident that the miners are capitulating in precedence of the Bitcoin mining reward halving in May. Coinmetrics reports that the difficulty showed an increase of 7% after the adjustment. Moreover, Bitcoin hash rate has hit a new record 14.8T mark
Even prior to the year, long before Bitcoin mining difficulty adjustment took place, the crypto world was very engaged debating the impact it can have on the market. The term ‘difficult is often overused, but it is understated how significant it is for Bitcoin. It is a culmination of hashes or a necessary solution to a complex mathematical problem that is essential to formulate a new block.
The bigger the computing power of the network, the faster is the exploration rate of new blocks. Around 2,016 blocks or about two weeks, the difficulty was adjusted. The increase in mining difficulty leads to an increase in the competition too, and then it is even more toilsome to earn rewards from mining. Most often than not, the harder it is to earn rewards, the more expensive the price of Bitcoin becomes.
With the latest adjustment, Bitcoin has hit its all-time record. IT is also now, three times more difficult to mine a bitcoin than it was a year ago.
On January 7, the hash rate rose to a new record of 120 475 000 TH/s, electricity which is comparable to 1.65 million Antminer S17+. The most prominent ASIC device available on the market is Antminer Crypto Miner Hardware.
Analyst Assured About Bitcoin
Many analysts are of the view that the impending halving will throw most miners out of the business and reduce the hash rate. However, the numbers tell a different story. 66% of the world’s hash rate is under the control of Chinese Bitcoin miners. Recently though the mining has cut down in China while the hash rate has shown an audacious spurt.