Bitcoin difficulty hits new ATH rising by 4.68%, further securing the network

‘s difficulty has risen by 4.68% in the second largest positive adjustment in a year to reach a new all-time high. The blockchain’s difficulty is set automatically within Bitcoin’s core code based on mining activity on the network.

The below chart illustrates the most significant adjustments, both positive (green) and negative (red.) Over the past twelve months, the change in difficulty can be seen to have little correlation with Bitcoin’s price.

BTC difficulty
BTC Difficulty | Source: Glassnode

Higher difficulty means a more secure blockchain as it becomes more energy intensive to attempt to attack the network. In addition, it becomes harder to mine new blocks as the difficulty increases about the global hashrate.

The difficulty adjusts relative to the miners’ hashrate to keep the time to create a new block to a consistent 10 minutes. Thus, should a ‘bad actor’ onboard miners onto the network to attack it, the difficulty would continue you increase along with the hashrate. The difficulty adjusts every 2,016 blocks meaning an attack would have under two weeks before the new miners would cause the network to adapt to reduce their impact and control of the network.

Further, an increase in difficulty means more consistency in block times. The time to mine a new block becomes more reliable with a greater difficulty due to increased competition among miners.

However, the increase in difficulty puts further stress on the mining industry. More computing power is required to earn equivalent rewards, making the ROI on mining hardware less favorable.

The rise in Bitcoin’s price in recent weeks will have alleviated many miners’ worst fears as Bitcoin rewards are worth more in dollar terms. Following several miners filing for bankruptcy or restructuring during the bear market, the price rally is a much-needed respite for miners.

Bookmark (0)
ClosePlease loginn

Related Posts

Trump NFT sales volume soars 461% following indictment

Trump NFT sales volume soars 461% following indictment

Trump has lashed out at the news of his indictment, calling it a “political persecution.”

Bookmark (0)
ClosePlease loginn
XRP Perpetual Futures Open Interest skyrockets to $610 million

XRP Perpetual Futures Open Interest skyrockets to $610 million

The XRP derivative market indicates strong positive sentiment, some expect the SEC lawsuit to conclude soon.

Bookmark (0)
ClosePlease loginn

Binance Fan Token Platform Launches Alpine Race Collectibles for Unique F1 Experiences

Bookmark (0)
ClosePlease loginn
CNBC’s Jim Cramer calls Binance “way too sketchy”

CNBC’s Jim Cramer calls Binance “way too sketchy”

Crypto community reacts to Jim Cramer’s comments on Binance with humor and irony amid mounting regulatory pressures.

Bookmark (0)
ClosePlease loginn
CryptoSlate wMarket Update: Mixed market performance sees Bitcoin drop below $28,000

CryptoSlate wMarket Update: Mixed market performance sees Bitcoin drop below $28,000

The wMarket Update condenses the most important price movements in the crypto markets over the reporting period, published 07:45 ET on weekdays.

Bookmark (0)
ClosePlease loginn
KCC upgrade to enhance performance goes live on testnet

KCC upgrade to enhance performance goes live on testnet

The fan-built KCC V.1.3.0 upgrade focuses on merging upstream code, enhancing performance, and resolving bugs.

Bookmark (0)
ClosePlease loginn

Leave a Reply

Your email address will not be published. Required fields are marked *