Bitcoin Mining Difficulty Hits Record High as Halving Nears
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The Bitcoin mining difficulty has surged by 3.9%, reaching an all-time high just before the highly anticipated halving event, expected to occur on April 20. The latest adjustment, recorded at block height 838,656, saw the difficulty level reach an unprecedented 86.39 trillion.
As reported by The Block, data from the blockchain explorer Mempool indicates that miners are intensifying their efforts, boosting their hash rate in anticipation of the upcoming reduction in block subsidy rewards, which will decrease from 6.25 BTC to 3.125 BTC. This increase in difficulty and hash rate has been a trend since the year’s start, with a 20% rise in difficulty and a 24% increase in total hash rate.
What is Bitcoin Mining Difficulty?
Mining difficulty is a crucial metric in the Bitcoin network, measuring the complexity of mining a new block compared to the baseline difficulty. This metric adjusts every 2,016 blocks, approximately every two weeks, to maintain a consistent block discovery rate of roughly one block every 10 minutes, irrespective of the number of active miners.
Bitcoin’s Hash Rate Soars As Well
Bitcoin’s hash rate—the total computational power miners contribute to the network—has hit a new seven-day moving average peak of 629.75 EH/s, according to The Block’s data dashboard. Despite the positive trend in miner revenues this year, thanks to the uptick in Bitcoin’s price, the halving’s impact on less efficient mining operations remains uncertain.
Following the difficulty adjustment, Bitcoin’s hash price—a measure of the revenue per terahash of computing power—dropped to $0.11/TH/s. This figure is expected to halve immediately after the halving.
The event is closely watched by investors and enthusiasts alike, as it could signal changes in the mining landscape and influence Bitcoin’s market dynamics.
At the time of writing, Bitcoin is trading at neutral levels as it holds onto the $70,000 round figure. The benchmark cryptocurrency also boasts an impressive 66% growth year-to-date.
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