Bitcoin (BTC) mining difficulty has soared to its highest level ever, reaching 75.50T at block height 828,576 on February 2, less than a month after a record-breaking increase on January 6.
Peak in Mining Difficulty
Mining difficulty saw a significant increase of 7.33% this year, marking the most challenging period in the history of Bitcoin mining. This milestone highlights the increasing difficulties and computational demands faced by miners in the Bitcoin network as the next halving event approaches. Moreover, the latest adjustment in mining difficulty is part of the network’s regular mechanism aimed at maintaining a consistent block discovery time of approximately 10 minutes. This recent rise reflects a notable change from the previous adjustment on January 20, 2024, which saw a decrease of 3.90% in difficulty.
Bitcoin network undergoes difficulty adjustments approximately every two weeks to adapt to changes in the network’s computational power, ensuring stable and secure block discovery. With difficulty now reaching 75.50 trillion, the criteria for mining a valid Bitcoin block have become stricter, requiring miners to exert more computational effort and resources.
This increase in difficulty comes as the Bitcoin community anticipates the fourth halving event, expected to occur in fewer than 11,500 blocks. Halving will reduce the reward for mining a new block from 6.25 Bitcoin to 3.125 Bitcoin, potentially intensifying competition among miners for the diminishing rewards. Despite the surge, the collective hash rate of the Bitcoin network continues to demonstrate its strength, maintaining an average of 536 exahash (EH/s) per second over a seven-day simple moving average, close to the all-time high of 566 EH/s reached on January 29, 2024.
Mining Challenges on the Rise
The next mining difficulty adjustment is scheduled for February 15, 2024. The mining community will be closely monitoring this adjustment as they grapple with the increased difficulty and prepare for the upcoming halving event. Both are poised to significantly impact the economy of Bitcoin mining.
However, the record-level mining difficulty underscores the competitive nature of Bitcoin mining and the continuous growth and resilience of the Bitcoin network. As miners adjust their operations to the new level of difficulty, the broader implications for the cryptocurrency market and network security will remain a focal point for stakeholders.