- Bitcoin’s mining difficulty continues to increase despite falling miner income. The Bitcoin mining difficulty, which measures how difficult it is for miners to get block rewards, increased by 1.05 percent to 20.82 trillion, according to data provided by BTC.com.
Bitcoin’s mining difficulty continues to increase despite falling miner income. The Bitcoin mining difficulty, which measures how difficult it is for miners to get block rewards, increased by 1.05 percent to 20.82 trillion, according to data provided by BTC.com.
This is the second consecutive positive adjustment of the network. On January 9, Bitcoin’s difficulty increased by 10.79 percent, the biggest increase since September 2020.
The next adjustment, expected to take place in about two weeks, is predicted to be in the green zone. But things may change depending on how the market will behave in the near future.
Mining has never been this hard for Bitcoin
After the most recent surge, it will experience the most competitive two-week mining period in Bitcoin history. This means miners will need top-notch hardware to stay in the game. Difficulty has increased by over 37.5 percent since the four-year halving in May
Depending on how long it takes miners to generate new cryptocurrencies, the aforementioned metric adjusts for every 2016 mined block.
Looking at hash power, the total computing power of the Bitcoin network rose to an all-time high of 155 TH / s on January 17th. Positive adjustments are required to mitigate the impact of growing network capacity. When Bitcoin slumped in March 2020 and miners surrendered, the difficulty saw its biggest drop since 2011.
Regular adjustments ensure that the market is neither under-supply nor over-supply, thus maintaining perfect balance.
Miners not affected by their falling income
As Bitcoin rises to $ 42,000, the Bitcoin mining industry is in the middle of its renaissance. The demand for new top ASICs is so strong that leading manufacturers are struggling to cope with shortages.
On January 7, 2021, miner revenue rose to $ 45.1 million daily, but then dropped to $ 30.3 million in less than two weeks in line with the cryptocurrency market.
However, this did not affect the hash power nearing record levels, resulting in another positive difficulty adjustment.