The Reason for the Sudden Increases in the Bitcoin Hash Rate
The difficulty of mining a bitcoin block has increased by around 10% during the latest adjustment, suggesting that more miners are coming back online as prices continue to recover.
The adjustment at block height 772,128 is the biggest downward change since October 10, 2022, when the metric rose by 13.55%, data from mining pool BTC.com shows. Specifically, the difficulty has gone up to 37.59 billion from the previous 34.09 billion.
“Difficulty of Bitcoin Mining Increased by 10.26%, Reaching ATH!” F2pool said in a tweet after the change. “During this two-week period, if BTC can exceed $23,000, a machine that is more efficient than 40 W/T can work with an electrical profit of $0.08/kWh.”
Bitcoin mining difficulty is a measure of how difficult it is to obtain a Bitcoin block, or in other technical terms, to find a hash under a given target. A higher difficulty means that it will take more computing power to get the same number of blocks, which makes the network more secure against attacks. Historically, high network difficulty has been accompanied by periods of high cost. In contrast, falling BTC prices sometimes force miners to go offline as it becomes unprofitable, which leads to a reduction in the difficulty of Mining.
Bitcoin Difficulty Surges as Crypto Industry Struggles with Market Decline and Rising Mining Fees
The latest surge in difficulty comes as Bitcoin broke above key resistance levels over the weekend and extended its rally. The world’s largest cryptocurrency broke above the $21,000 mark sometime in the past day and is currently trading around $20,800. Last year was one of the worst on record for the crypto industry, with more than $1 trillion in value wiped from the market. Interest rates are on the rise and the worry of a further economic slowdown due to falling prices.
The general market conditions are not good affecting the crypto mining pool. As reported, Core Scientific, one of the largest bitcoin mining companies, filed for bankruptcy in December last year amid plummeting cryptocurrency prices and rising mining fees. ‘power. In court filings, Core Scientific said it had a loss of $434.8 million for the three months ending September 30, 2022, and only had $4 million available. money when you file for bankruptcy.
Apart from Core Scientific, other crypto mining companies are struggling with the market decline. Argo Blockchain, Iris Energy, and Greenidge Generation are among the prominent Bitcoin mining companies facing financial difficulties.