As Bitcoin is soaring, so are its key metrics. Mining difficulty is one of the fundamental metrics in Bitcoin as it affects the generation of new coins, thus impacting the supply of new coins into the Bitcoin network. And at the moment Bitcoin’s mining difficulty is touching new highs, thus boosting the fortunes of Bitcoin mining industry as well.
According to Chinese mining pool BTC.com, Bitcoin’s mining difficulty has recently taken its steepest turn since 2018 with a rise of 14% and currently stands at 9.06 trillion (9.06 T) at the block height of 584,640. The average hash rate is 64.85 EH/s. This has been achieved by surpassing the previous record of 7.93T, which was recorded about 16 days ago on 27th of June. The current difficulty is 14.23% above this record.
These stats have never been seen before in the entire history of Bitcoin network. Last time when such a sharp rally had been recorded in Bitcoin network was back in July 2018. At that time a rally of 15% was recorded over an interval of 2,016 blocks. Absolute difficulty at that time was at a much lower point of 5.95T, and the hash rate was 42.59 EH/s.
As a result of this surge in mining difficulty, Bitcoin mining pools are also seeing a sudden surge in their business. And actually, it is the need of the hour for them, as many of the pools have accumulated serious losses during the last decline of Bitcoin that begun in November.
Bitcoin algorithm adjusts the mining difficulty of transaction blocks after an interval of every 2,016 mined blocks to ensure that the finite supply of 21 million Bitcoins isn’t put into circulation too quickly (because a Bitcoin is generated on successful mining of every single block). It’s an integral part of Bitcoin’s design to keep its price adjusting automatically with time and inflation. It roughly takes two weeks to mine 2,016 blocks of Bitcoin, which leads to another adjustment in mining difficulty. According to BTC.com, the next adjustment in the difficulty is likely to take place after 10 days. And when that happens, we may be staring at a difficulty of 10 T!!! Again, that will be another major milestone for the Bitcoin network, and it looks that the time has come to break all the previous records. We’re definitely in a bull market!