Bitcoin mining is booming as its level of difficulty skyrockets
According to the important pool of Chinese mining company BTC.com, the difficulty of mining in the Bitcoin network (BTC) has experienced its biggest rebound in almost a year, with an increase of up to 14%.
This significant increase registered on July 9, allowed the Bitcoin network to reach 9.06 billion (9.06 T), at an average hash rate of 64.58 EH / s, the highest recorded to date in the history of the network.
The last time he achieved a similar increase in the difficulty of the network, it was in July 2018, when this value soared to almost 15% in an interval of 2016 blocks.
By then, the average hash rate was 42.59 EH / s and the absolute difficulty of the network was 5.95 T.
Bitcoin uses the consensus mechanism for block production called Proof of Work, PoW, which is designed by Nakamoto to produce blocks with a self-adjusting difficulty every 2016 blocks, which allows it to maintain a verification time of approximately 10 minutes. This adjustment of the difficulty in the design of the algorithm is fundamental to guarantee the security of the network.
Logically when the network has high demand, the difficulty increases to avoid the centralization of the network by those miners who have more hash power and the opposite happens, when fewer miners join it.
It is normal to see during the bull rallies the greater interest for the miners to join the Bitcoin network, because it is attractive not only the reward of the block for a good market price of the obtained coins that allows a significant income to offset the investments in equipment and lodging, data and electricity costs, but also for the fees that are so lucrative in times of high network congestion during these high price seasons.
Data from the BTC.com mining pool indicate that the next increase in the difficulty will make this bullish trend intensify further, within 11 days, this mining metric is expected to increase another 10 percent to reach 9, 9T.
By increasing this number, logically the power centralization of mining increases, due to the high costs that are required to have enough hash to ‘mine’ a Bitcoin.
As a consequence, small actors are displaced and large mining pools such as BTC.com are the main protagonists of the lucrative activity scene.
This as a result also translates into high hash powers that have allowed to reduce the production time of 2016 blocks to 8 minutes, less than the average 10 minutes configured by the network.
During the crypto winter, the popular news media CoinTelegraph reported that the Bitcoin network had reported its second largest decline in difficulty in history, with a -15% adjustment at the beginning of December 2018.
The historical data of BTC.com show, however, that the recent increase registered in percentage terms is lower than the maximum registered in autumn 2010, when the network was subject to increases of up to 56%, but with an absolute minimum difficulty compared to the current values recorded.
At the time of writing, Bitcoin is trading at a spot price of $ 11,658.67, a monthly increase of 47.86%, compared to the beginning of last month, where BTC was close to $ 7,000.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.