Bitcoin’s mining difficulty, a measure of the complexity of cryptographic puzzles in the mining process, surpassed 80 trillion. Simultaneously, the network’s hash rate, indicative of total computational power used by miners, reached 562.81 exahashes per second (EH/s), marking a new high. The mining difficulty has been steadily increasing since January 2023 and is anticipated to reach 100 trillion in the coming months.
In the proof-of-work consensus mechanism of Bitcoin, a higher difficulty implies that miners need more computational power and energy to find the correct hash. Over the last year, Bitcoin’s difficulty level has more than doubled, reflecting the escalating resources required for mining.
During the automated readjustment on February 15, Bitcoin mining difficulty was projected to increase by approximately 6%, potentially reaching new all-time highs above 80 trillion for the first time.
As of February 16, Bitcoin’s price remained at $52,000, maintaining stability despite fluctuations in traditional financial markets. The latest United States macro data, surpassing expectations, contributed to the resilience of Bitcoin’s price.
Looking ahead, Bitcoin is approaching its halving event in April, where mining rewards will be halved from 6.25 BTC to 3.125 BTC. This reduction, integrated into Bitcoin’s structure to combat inflation roughly every four years, may impact the hash rate. Less efficient miners could find it challenging to cover costs, potentially leading to a decrease in the overall hash rate and subsequent reduction in mining difficulty, aiming to maintain a steady block production every 10 minutes.
Analysts from Galaxy Digital suggest that up to 20% of Bitcoin’s current hash rate could go offline after the halving, leaving only the most efficient mining rigs operational. This scenario underscores the dynamic nature of Bitcoin mining and its susceptibility to changes in economic incentives for miners.
