According to data from BTC.com, on Sunday, Bitcoin’s mining difficulty increased by another 3.44% and hit a new all-time high of 36.835 trillion hashes. As the network’s mining difficulty increased, the competition among Bitcoin miners also increased.
However, this increase in mining difficulty is not as significant as the previous one. Earlier this month, the increase rate in mining difficulty was 14%. This increase in mining difficulty builds more pressure on Bitcoin miners means the miners need to spend additional resources to perform the same work.
Mining difficulty is a measure that measures the computational power required to validate Bitcoin transactions. It also measures how hard it is to find new blocks and earn rewards. However, the mining difficulty of a network adjusts approximately every two weeks, which reflects the level of competition among miners. For example, if the mining difficulty is low, the competition will also be low. In the second condition, if the mining difficulty is high, the competition will also be high.
On the 24th of October, Bitcoin’s average hash rate also called the computational power of the network, which the network use to process transactions is currency at 263 EH/s, up from 258 EH/s. This hash rate means that more machines are being connected.
The reason behind the increase in Bitcoin’s mining difficulty is its price, which has been struggling slightly above the $19,000 level. On the 24th of October, at the time of this writing, Bitcoin is trading at $19,314, 0.2% up from yesterday. Over the past week, its price increased by 0.7%.
In this time of low prices, Bitcoin users need to sell more Bitcoin to compensate for the dwindling profits. According to a report from IntoTheBlock, Bitcoin held in reserve by mining companies fell this month to 1.91 million BTC.
