On Friday, Feb. 16, Bitcoin mining difficulty, a measure of the complexity of solving cryptographic puzzles in the mining process, surpassed 80 trillion. Simultaneously, the network’s hash rate, reflecting the total computational power used by miners, reached a record 562.81 exahashes per second (EH/s).
Bitcoin mining difficulty has steadily increased since January 2023, more than doubling in the last year alone. It is expected to reach 100 trillion in the coming months. A higher difficulty indicates that miners require more computational power and energy to find the correct hash.
The increase in difficulty implies that miners need to invest in more powerful hardware to maintain profitability. The upcoming automated readjustment on Feb. 15 is estimated to further increase difficulty by approximately 6%, pushing it to new all-time highs above 80 trillion.
Despite the mining difficulty reaching record levels, Bitcoin’s price remained stable around $52,000 on Feb. 16. The upcoming Bitcoin Halving in April will reduce mining rewards from 6.25 BTC to 3.125 BTC. This reduction may lead to less efficient miners shutting down their rigs, causing a decrease in the hash rate.
Galaxy Digital analysts suggest that up to 20% of Bitcoin’s current hash rate could go offline after the halving, leaving only the most efficient miners operational. This shift could impact the network’s overall security and stability.
The continuous increase in Bitcoin mining difficulty and hash rate reflects the growing competitiveness of the mining industry. As the network approaches the upcoming halving event, miners will face new challenges, potentially reshaping the landscape of Bitcoin mining operations.
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