Bitcoin Mining Difficulty Reaches All Time High
Evening
So despite the recent price melt down, Bitcoin network is stronger than ever as it has recently recorded a new all time high mining difficulty of 26.643 trillion, in comparison to previous all time high of 25.04 trillion in May 2021.
Bitcoin mining difficulty is a measure of how much difficult it is to mine the next block on the network. Increased mining difficulty means it takes more computation power to validate transactions on the network. Bitcoin network uses mining difficulty adjustment to keep the average block mining time at 10min.
After previous all time high in May 2021, Bitcoin mining difficulty saw a steep decline majorly due to Chinese miners going offline following the Chineese government crypto mining ban. Before May 2021 China accounted for nearly three quarters of total global bitcoin mining with 71% contribution to network’s total processing power. Following the ban, Chinese miners were forced to move their mining operations off-shore.
Despite taking a serious hit from sudden Chinese ban, Bitcoin network survived and came back even stronger. As displaced Chinese miner started resuming their mining operation in mining friendly territories, network hash rate steadily started recovering and difficulty continued rising.
Bitcoin mining operations had been extremely profitable, given the increased Bitcoin prices last years. These increased mining profits had pushed miners to purchase and install more mining capacity, hence increased hash rate and network difficulty. The situation is gonna remain the same as mining capacity is expected to rise with more mining hardware(ASIC Antminer S19 XP) deliveries happening latter in 2022.
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That is very reassuring ! I was worried at some point that the Bitcoin network was getting less and less secure.
Yeah more secure network. I am happy that China is actually out of BTC.
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This is very good. The network has great protection