October 3, 2022

Regardless Of the Price Crash: Bitcoin Hash Rate and Mining Difficulty at ATH

2 min read

While bitcoin’s rate went through another high correction in the previous 24 hours, the network’s toughness only increases. The BTC hash rate just recently tapped a new all-time high, while the mining trouble went through a 9% favorable adjustment, leading to a peak of its own.

Hash Rate and Mining Difficulty See ATHs

Ever since the summer of 2021, when the Chinese authorities ousted bitcoin miners and the hash rate discarded by 60% in weeks, the metric has been gradually recuperating the lost ground. This led to nearing and eventually surpassing the previous peak, as CryptoPotato reported earlier in January this year.

The hash rate, the essential metric showcasing the robustness of BTC’s network, continues to frequently sign up new ATHs, with the most recent being at over 210 Ehash/s, according to BitInfoCharts.

Bitcoin Hash Rate. Source: BitInfoCharts
Bitcoin Hash Rate. Source: BitInfoCharts The increasing hash rate suggests that there’re more miners putting their computational gadgets to work on the world’s biggest blockchain. While this sounds excellent on paper, it would have actually had the ability to damage miners’earnings as it would have ultimately made it extremely tough for them to make benefits.

However, Satoshi Nakamoto predicted a comparable possible scenario when establishing the network and integrated a feature called mining problem adjustment. Basically, it makes it harder (or simpler) for miners to do their task depending on how many of them are presently online. It adjusts every 2,016 blocks (approximately two weeks).

Positive adjustments suggest that the variety of miners has increased, and vice-versa. For example, after the Chinese ban, the network experienced severe delays as there were less miners, and it had to adversely adjust itself numerous consecutive times.

Now, though, the landscape is entirely different. In the previous 14 readjustments, there was just one negative (-1.5%) on November 28th. The last positive one, which took place hours earlier, increased the problem by 9.32%, which really led to a brand-new all-time high for this metric.

Bitcoin Mining Difficulty. Source: Glassnode
Bitcoin Mining Difficulty. Source: Glassnode However BTC’s Price Goes Down While all the vital network features are going for records, the cryptocurrency’s price is heading in the opposite direction. The possession dumped by$5,000 in hours to a six-month low at simply over $38,000 hours ago.

Moreover, bitcoin’s rate is down by more than 40% considering that its own peak at $69,000 registered in November. As such, BTC is no longer a trillion-dollar possession given that its market capitalization has a hard time underneath $750 billion.

BTCUSD. Source: TradingView

BTCUSD. Source: TradingView