Bitcoin Mining Difficulty Reaches All-Time High After Fourth Halving: What Has Changed and What Role Does Runes Play?
The difficulty of mining Bitcoin (BTC) has reached an all-time high following the latest recalculation, a milestone that has not been seen since the last three halvings. According to BTC.com, the current difficulty of mining the leading cryptocurrency stands at 88.10 T, marking a significant increase in the mining challenge.
In previous Bitcoin cycles, the mining difficulty has fluctuated in response to halving events. After the fourth halving on April 20, which occurs every four years and reduces the block reward by half, the mining difficulty has increased by almost 2%. This is a departure from previous cycles where the difficulty either decreased or remained unchanged following halving events.
The decrease in mining speed typically leads to a drop in profitability for miners, prompting less efficient miners to power off their rigs and subsequently reducing the mining difficulty. However, in the current cycle, the network’s computing power has remained stable, with miners adapting to the reduced block rewards by focusing on transaction fees to offset their losses.
One factor contributing to the stability of the network’s hashrate post-halving is the introduction of Runes, a new protocol that allows for the creation of altcoins on the Bitcoin network. Launched shortly after the halving, Runes generated a surge in transaction fees on the blockchain, with average commissions peaking at $128.45 and the share of transactions involving Runes exceeding 80%.
Despite the initial hype surrounding Runes, transaction fees on the BTC network have since stabilized, with the average commission now around $7. Runes still accounts for a significant portion of transactions, with miners earning approximately 2,109 BTC from Runes transactions in just six days, equivalent to around $133 million.
Overall, the current increase in Bitcoin mining difficulty, coupled with the introduction of innovative protocols like Runes, highlights the evolving landscape of cryptocurrency mining and the resilience of miners in adapting to changing market conditions.
