Mining difficulty for bitcoin has increased by 7.33% but the collective hash rate of the Bitcoin network is maintaining strength.
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Halving Ritual
Apart from the four-yearly halving ritual, the Bitcoin network also undergoes difficulty adjustments roughly every two weeks.
Bitcoin mining has witnessed a remarkable increase in mining difficulty, reaching a new all-time high of 75.50T at block height 828,576 on Feb. 2. This is a 7.33%, which stands as the most substantial rise seen this year, a testament to what miners are about to face after the halving.
The Bitcoin community eagerly awaits the fourth halving event since the inception of Bitcoin. This is expected to occur in less than 11,500 blocks (April 21, 2024). After the halving event, the reward for mining a new block will decrease from 6.25 to 3.125 bitcoins, intensifying the competition among miners for reduced rewards.
Read Also: 86 Days to Bitcoin Halving. Here is what to expect
Hashrate Shows strength
Even with the increased difficulty, the Bitcoin network’s combined hash rate remains robust, averaging 536 hash per second (EH/s) over a seven-day simple moving average, which is near the peak of 566 EH/s recorded on Jan. 29, 2024.
Mining power within the Bitcoin network is concentrated among a few major pools, with Foundry USA and Antpool collectively controlling over 60% of the total hash rate. Foundry USA is currently the leader, contributing 31.94% to the network’s computational power, followed by Antpool.
Final thoughts
The upcoming mining difficulty adjustment is slated for Feb. 15, 2024. The mining community will keenly observe this adjustment as it grapples with heightened difficulty and readies itself for the imminent halving event, both of which are expected to have a substantial impact on the economics of Bitcoin mining.
As miners adapt to the heightened difficulty, stakeholders will remain attentive to the broader implications for the cryptocurrency market and network security.
