Bitcoin Mining Difficulty Reaches New High Making Barrier to Entry Harder Than Ever Before
- Bitcoin difficulty continues to grow as new miners enter the space
- Bitcoin has surpassed $13,700 a few hours ago
Bitcoin (BTC) mining difficulty has reached a new record high when it surpassed 7.93 trillion a few hours ago. This new level surpassed the previous record at 7.45 trillion registered in October 2018. Every 14 days, Bitcoin adjusts its difficulty in order to control the mining market.
Bitcoin Difficulty Reaches New Highs
Difficulty in the network adjusts every 2,016 blocks according to the computing power that is deployed in the network. This is done in order to ensure that the block production interval remains constant at around 10 minutes. If the hash power surges, difficulty follows, if it falls, then difficulty adjusts itself as well.
Bitcoin hash rate has reachedanew all-time high a few days ago, according to data provided by Blockchain.com. Bitcoin hash rate has surpassed 65 million TH/s. These machines that are now processing transactions are trying to compete for the rewards that each block currently gives. The reward is currently 12.5 BTC but next year is going to fall to 6.25 BTC per block.
This is very bullish for Bitcoin that could help increase the price of the most popular digital currency. With a lower new issuance of Bitcoin and a stable demand for the digital asset, the price of the digital currency could eventually behave positively.
According to CoinDesk, assuming that additional computing power has come from the AntMiner S9 with an average rate of 14 tera hashes per second (TH/s), there might be 2 million units that were switched on over the last months.
The price increased that Bitcoin experienced during the first months of this year have played an important role in attracting new miners to the crypto space. As reported by BTC.com, Bitcoin mining difficulty could also grow another 7 percent during the next adjustment cycle. That means that Bitcoin’s difficulty is expected to be above the eight trillion threshold.
There are several machines in China that have been plugged in due to the fact that the rainy summer is getting closer. China is the country with the largest number of miners in the world. The country has cheap energy and cold weather in some regions during several months of the year, which allow miners to operate in a more efficient way.
Zun Zheng, the CEO of the mining farm Hashage in Chengdu, explained that it usually starts raining throughout May and hydropower plants have enough water to start producing large amounts of energy by June.
Due to the fact that there were no rains during the last months, his plant was operating at 40% of its capacity. Now, the proportion climbed to over 60 percent.
Bitcoin has surpassed $13,700 a few hours ago, the highest price for Bitcoin in over a year. This shows that the digital currency is attracting new investors and individuals to the market. With this price increase, more miners want to profit from it.