Bitcoin mining difficulty saw a further increase in 2023, bringing the metric to a new all-time high. Bitcoin “difficulty” is a critical aspect of the network that controls the rate at which new blocks are added to the blockchain at any given time.
Bitcoin Mining Difficulty Hits New High of 67.96T
According to data from BTC Blockchain Explorer, the Bitcoin network saw a significant adjustment at block height 818,496. This caused the blockchain’s difficulty to climb by 5.07%, reaching a new all-time high of 67.96T.
Mining difficulty is an essential characteristic that measures the amount of energy required to verify transaction blocks on the Bitcoin blockchain. An increase in mining difficulty value suggests higher demand for the Bitcoin network, while a lower difficulty value implies that there are fewer miners on the network.
Bitcoin mining difficulty ushered in a mining difficulty adjustment at block height 818496. The mining difficulty was increased by 5.07% to 67.96T, continuing to reach an all-time high. The current average hashrate of the entire network is 504.80 EH/s.
-Wu Blockchain (@WuBlockchain) November 26, 2023
It is worth noting that the metric has been trending upward over the past few weeks. In fact, the recent mining difficulty value represents the sixth consecutive increase over the last six adjustments.
Interestingly, the new mining difficulty value has exceeded the first projections for blockchain. Initially, Bitcoin mining difficulty was only expected to increase by around 3.8% to 67.14T at the last adjustment.
The network’s hash rate, which measures the total computing power for BTC mining, has also increased. According to BTC Blockchain Explorer, the current average hash rate of the Bitcoin network is 504.8 EH/s, an increase of 3.76% from the previous hash rate of 486.5 EH/s.
Some of the factors contributing to the increasing difficulty of Bitcoin mining are the recent price performance of BTC, the recent increase in network activity, and rising transaction fees. And as the indicator continues to rise, it appears that mining companies will continue to face the challenge of maintaining profitability.
BTC Price Overview
At the time of writing, Bitcoin is valued at $37,510, reflecting a 0.6% price increase over the past day. Although the leading cryptocurrency appears to be moving away from the $38,000 mark, it managed to maintain most of its profits over the weekly time frame.
According to data from CoinGecko, the price of Bitcoin has increased by more than 2.7% over the past seven days. Meanwhile, the market leader recorded a 10% increase over the past month, highlighting its strong performance in November.
Bitcoin remains the largest cryptocurrency in the industry, with a market capitalization of over $733 billion.
Bitcoin price drifts away from $38,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView