Bitcoin mining difficulty at its highest level
Bearish mood on the market, but miners of the oldest cryptocurrency strongly support its network.
The difficulty of Bitcoin mining has been at its highest level since the beginning of 2022. The simple conclusion is that despite the marked decline in the price of BTC, which has lost about 70% of its value since its ATH in 2021, miners are still strongly supporting its network. This, in turn, translates into increased security of the entire BTC network.
BTC mining difficulty at its highest level since January
Bearish sentiment in the market is always a difficult period for Bitcoin miners due to the fact that the price of the largest cryptocurrency in terms of market capitalization is the main factor influencing the profitability of their business. However, regardless of the lack of increases in the exchange rate of this cryptocurrency, these entrepreneurs constantly support the BTC network.
Based on data from BTC.com, it can be concluded that the difficulty of mining has increased to around 31 trillion. It is therefore the highest level since the beginning of 2022. According to experts, this could be due to a number of reasons, most notably the availability of newer excavators, but also the waning heatwave.
The Bitcoin network has been programmed so that the mechanism of this cryptocurrency generates a new block every 10 minutes. The more miners compete with each other during the mining process, the more hashrate increases. The increase in the volume of computing power means that the difficulty of mining BTC is also increasing. The same correlation also takes place in the opposite situation, because when the hashrate decreases, the difficulty of mining Bitcoin also decreases.
Increase in hashrate on the BTC network
Luxor Technologies COO - Ethan Vera said in an interview with the media that the sudden increase in hashrate in the network of the most important cryptocurrency is the result of delivering more efficient equipment, falling summer temperatures resulting from the change of the season and the supply of older generation excavators to regions with low energy costs.
The visible decrease in BTC hashrate could be clearly observed in mid-July this year with the increasing wave of high temperatures that attacked, among others, North America. In addition to the fact that the equipment used to mine Bitcoin consumes a very large amount of energy, it also generates a large amount of heat during its operation - BTC mining companies in this case incur additional costs related to cooling the excavators.
The volatility trend in the BTC mining difficulty changes throughout the seasons
Experts from Galaxy Digital noted in their last report that the rule is that the difficulty of BTC extraction decreases in the summer months, and then experiences rapid increases in the course of autumn and winter. In the opinion of cryptocurrency market experts, the current trend may continue in the future.
On Friday, September 2, the oldest cryptocurrency wandered from hand to hand at an average price of $ 19,850. This is the price at which the BTC exchange rate has held on the chart for some time.
