Bitcoin Mining Difficulty Picks Up Pace

Bitcoin Mining Difficulty Picks Up Pace

August 31, 2022 0 By Jeanine Sanchez

Bitcoin recorded its longest streak of network difficulty on Wednesday. This is the leading coin’s best outing with regard to its mining difficulty since the month of February. The asset’s mining difficulty level as well as its hash rate monitor jumped beyond significant psychological areas.

The Need for an Increment

According to the information shared by the automatic tracking services, it was reported that Bitcoin’s mining difficulty got adjusted at about 6:30 am UTC on Wednesday. 

Bitcoin difficulty is a special mechanism that shows how difficult or easy it is to mine a brand new block of Bitcoin for the miner on the Bitcoin network. Now that it is said to have increased by 9.26%, it becomes the second-highest positive difficulty level the network has seen this year.

As of the time of this report, the mining difficulty of Bitcoin sits at exactly 30.98 T. It is just down by 0.87% from its all-time height.

The Bitcoin network’s average hash rate, which is the number of hashes produced by the overall number of Bitcoin miners per second, got to 221.72 quintillion/second. It is equally lower by just 0.9% from its all-time height that was recorded on the 11th of May this year.

Will High Mining Activity Return?

The network’s mining difficulty and its hash rate from all miners per second are important indicators as they show the activities of Bitcoin miners on the network. Both indicators fall due to miners’ off moments when they stop mining if it is unprofitable to do so.

There is currently a pullback from mining activities to an extent. Bitcoin difficulty and mining hash rate indicators slid to 27.69 T, on one hand, and 198.15 EH/s on the other, for both of them.

As earlier reported by several media outlets, Bitcoin miners could have optimism about the price of the asset in the medium term. A bitcoin analyst said another Bitcoin activity monitor, Hash Ribbon, published what could be a bullish sign on the 20th of August.

The height of the crypto winter was a difficult moment for Bitcoin miners. High energy costs compounded their challenges and their operating cost began to outweigh their income. This instigated a period of Bitcoin sell-off rather than for miners to keep their proceeds.

It is hoped that miners can pick up the mining pace again.