Bitcoin’s mining difficulty hit an all-time high after rising around 6%, a move after a record month in revenue for Bitcoin miners when the new generation ASIC came into operation.
Difficulty is a relative measure of the amount of resources needed to mine Bitcoin. This measurement increases or decreases depending on the amount of power consumed or the hashrate generated by the network at a given time. Bitcoin is programmed to adjust its difficulty every 2016 blocks or roughly every 2 weeks to ensure that new blocks are mined at a steady rate.
This difficulty was measured on a relative scale when Bitcoin launched with a mining difficulty of “1”, the lowest level ever. (Difficulty works like a Google Search score in that the scoring system is internal and has no external reference point or unit of measure.)
As of today’s correction, Bitcoin’s mining difficulty at the moment is 24.5 trillion. According to data from BTC.com, this is a 6% increase from 21.8 trillion, making it the 2nd largest correction of the year and the 5th increase in six periods of medium difficulty adjustment. by.
Difficulty adjustment is arguably one of Bitcoin’s most important features as it ensures relatively stable block times, while also preventing a large miner from taking up too many hashrates.
New ASIC coming into operation leads to increased difficulty and hashrate
This latest adjustment is a notable change, said Compass CEO Whit Gibbs, because it could be because tens of thousands of new mining devices that have been pre-ordered in the ASIC supply chain are about to come in. work.
The current correction, he said, is just a sampling step of the hashrate flood that will come online in 2022, when more pre-order shipments are filled.
“Today’s moderate increase in difficulty is not surprising. I hope that’s just a bit of what’s to come by the end of this year and in 2022, when delayed batches of mining equipment begin to arrive and roll out. The pending hashrate flood is about to enter the market, which will only continue to push Bitcoin’s mining difficulty higher, which will watch along with Bitcoin’s price.
As the price of Bitcoin skyrocketed, investments in mining also went with it. Miners in North America such as Hut 8, Marathon, Blockcap and others have used the year 2021 as an opportunity to drastically expand operational capacity. As the miners go live, Bitcoin’s hashrate and difficulty are increasing along with miners’ revenue, reaching a record $ 1.5 billion in March.