October 2, 2022

Despite the Crash: Bitcoin Fundamentals Remain Stronger Than Ever

2 min read

Although the price of bitcoin has crashed in the previous 24 hours with double-digit percetages, the network’s basics stay strong. Recent information indicated that BTC’s mining difficulty and the hash rate had reached new all-time highs.

BTC Mining Difficulty And Hash Rate ATHs

The mining problem on the BTC network goes through an automated adjustment every 2,016 blocks (or approximately 2 weeks). Depending upon the variety of active miners putting their computational power to work on the blockchain, the modification could make it either easier or harder for them to finish the work and get rewarded.

It’s a function that allows the system to self-sustain in relation to external events affecting its efficiency.

After the most recent such change that occurred over the weekend, the mining trouble increased to a record high of over 20.6 trillion. This is the first time in over twelve years of BTC history that the metric has actually expanded above 20 trillion.

This represents a significant rise in the mining difficulty of over 20% given that November 3rd, when it dropped to 16.8 trillion after reports emerged that miners have actually moved out of China’s Sichuan province.

Bitcoin Mining Difficulty. Source: BTC.com
Bitcoin Mining Difficulty. Source: BTC.com The guideline recommends that the mining difficulty increases when there’re many miners on the network. Information from blockchain.com verifies this, revealing that the hash rate has also reached a brand-new all-time high of nearly 150,000,000 TH/s.

Compared to the occasions in early November when it dropped to 106 million, this is a massive increase of over 40%.

Bitcoin Hash Rate 7-D Average. Source: Blockchain.com
Bitcoin Hash Rate 7-D Average. Source: Blockchain.com Bitcoin Price Suffers

While the network’s principles continue to increase towards brand-new highs, the asset rate went to a vicious correction in the previous 24 hours.

BTC was hovering above $40,000 simply yesterday before it headed south to an intraday low of somewhat above $30,000. Although, the bulls recovered some of the losses from this near $12,000 price drop.

Nevertheless, the primary cryptocurrency is well in the green given that the start of 2021. BTC got in the new year at $29,500 and is still about 10% greater now, regardless of the current developments.