despite the fall in prices, the difficulty of mining has reached a new record

In a rather gloomy global context, the mining difficulty of Bitcoin (BTC) reached a new high over the weekend. We explain why this is significant.

All-Time High for Bitcoin (BTC) Network Mining Difficulty

As prices keep falling, there is one indicator linked to the Bitcoin network that keeps rising: mining difficulty. In any case, this is revealed by the data on the BTC.com site, which models this evolution.

The month of January will have seen the difficulty of generating a block from the Bitcoin network rise to 26,640 billion, an increase of +9.32%. A value that exceeds May 2021 record, before China’s ban on cryptocurrency mining.

This evolution has also been almost constant in recent months:

Bitcoin (BTC) Network Mining Difficulty Evolution – Source: BTC.com

We note that the mining difficulty only fell once last November, when the price of BTC fell after its all-time high.

👉 Find our guide on mining Bitcoin (BTC)

Why is the difficulty increasing?

The difficulty keeps increasing, because the number of miners keeps increasing, and with them the computing power (called hashrate) that they provide to the network. The mining difficulty must therefore continuously adjust up or down based on hashrate. Otherwise, the blocks of the Bitcoin network would be mined too quickly, or too slowly, which would call into question the stability of the latter. All cThis therefore allows the network to maintain a regular block production time. The average hashrate has now reached 188.63 PE/s.

In short, an increasing mining difficulty is a good news for bitcoin. Indeed, although this has no effect (or very indirectly) on its price, the more difficult the mining, the more the security of the network increases. And it all stems from a increased decentralization due to a growing number of miners. However, we know that decentralization is one of the most used arguments to justify the interest of the largest cryptocurrency.

This increase in difficulty also shows one thing: despite the substantial fall in crypto-asset prices, with a BTC which reached $34,000 this morning, the mining network continues to be attractive. It is therefore proof of the long-term health of the cryptocurrency.

👉 To go further – What is hashrate, or hash rate?

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