Bitcoin Mining Difficulty Rises by 4% as Hashrate Nears All-Time High Levels
The Bitcoin mining difficulty has recently risen by 4% as the mining hashrate approaches all-time high levels. The mining hashrate refers to the total computing power connected to the Bitcoin blockchain, which correlates with the network’s security. A higher hashrate makes it more difficult for bad actors to perform a 51% attack on the network.
The increase in hashrate also indicates the demand for mining cryptocurrency, with growth suggesting attractiveness and decline implying unprofitability. The 7-day average Bitcoin mining hashrate has been trending upwards, nearing its ATH value from mid-March. This increase in hashrate reflects competition among individual miners, as block rewards are fixed and distributed at a steady rate.
The Bitcoin network implements a difficulty feature to counteract increases in computing power, ensuring fair competition among miners. Following the recent hashrate increase, the difficulty has also risen in the latest biweekly adjustment on the chain. Despite these challenges, Bitcoin is currently trading at $69,700, up 3% over the past week.
Overall, the rise in Bitcoin mining difficulty and hashrate levels indicate a strong network security and growing interest in mining cryptocurrency. Investors and miners alike will need to adapt to these changing dynamics to remain competitive in the market.
