• Bitcoin mining difficulty recently reached close to 40.0T, as price and hashrate saw a rise.
• The network difficulty adjusts itself every 2016 block to keep blocks being mined on average every 10 minutes.
• The current Bitcoin hashrate indicates an increase in computing power, with a greater Bitcoin price making mining more lucrative.
Bitcoin Network Difficulty Inches Close to 40.0T
Bitcoin mining difficulty recently reached close to 40.0T, as the price and hashrate saw a rise. The remarkable ascent of Bitcoin (BTC) has been a topic of critical importance in the broader cryptocurrency community, leading other coins and tokens to follow suit in their own respective price increases. Blockchain.com’s stats show that the difficulty had been increasing consistently over the past few weeks, reaching very close to 40.0T at the time of writing – the highest level in more than a year.
Understanding Network Difficulty
The Bitcoin network difficulty is an important metric for gauging how hard it is for miners to solve cryptographic puzzles necessary for mining new blocks on the blockchain. To ensure that blocks are mined roughly every 10 minutes despite changes in processing capacity across the network, adjustments occur every 2016 block (approximately every two weeks). As the difficulty rises, it becomes increasingly difficult for miners to mine blocks; conversely when it decreases, it becomes easier for them to do so.
Why is Difficulty On The Rise?
Adding extra computing power (or hash rate) into the Bitcoin network will lead to its difficulty increasing too – making it tougher for miners to solve puzzles needed for mining new blocks . To keep average times between each block mined at ten minutes regardless of fluctuations in hash rate, adjustments must be made accordingly – which is what has been happening lately due to higher monthly contributions from miners after December 2022’s dip followed by January 2023’s surge up above 269k TH/s at present day . This growth comes from higher incentives given by increased value of Bitcoin, luring more miners into joining the network due its relative profitability from higher prices .