As recorded as the biggest leap of the year, with a 7.33% increase, Bitcoin mining has entered into its most challenging period in history.
On February 2nd, the mining difficulty of Bitcoin reached 75.50T at block 828,576, marking a new peak by surpassing its previous record. This occurred shortly after the record increase on January 6th, highlighting the increasing difficulties and computational needs in mining.
Bitcoin Halving is Approaching
The latest mining difficulty adjustment was made with the aim of maintaining the network’s average block finding time of 10 minutes. This represents a significant change since the previous adjustment on January 20, 2024, which saw a decrease in difficulty by 3.90%.
The Bitcoin network makes a difficulty adjustment every two weeks to adapt to changes in computational power. With the current difficulty level at 75.50 trillion, it has become even more challenging for miners to produce a valid Bitcoin block.
The fourth halving event, which will happen in about 11,500 blocks, will reduce the mining reward from 6.25 to 3.125 bitcoins. This will increase competition among miners, leading to a reduction in rewards.
Current Status of Bitcoin Hash Rate
Despite the increase in difficulty, the hash rate of the Bitcoin network countinues to remain strong. With a seven-day simple moving average, it is performing close to the record level of 566 EH/s reached on January 29, 2024, with 536 exahash per second (EH/s).
The Bitcoin mining power is largely concentrated among a few large pools. Foundry USA and Antpool hold more than 60% of the total hash rate, with Foundry USA in the lead at 31.94%.
The next mining difficulty adjustment on February 15, 2024, will be closely watched by the mining community. The increasing difficulty and the halving event will significantly affect the economy of Bitcoin mining.
The record difficulty level in Bitcoin mining demonstrates the competitive nature of the sector and the continuous growth and resilience of the network. As miners adapt to new difficulty levels, the impacts on the crypto market and network security will continue to be a significant focus.
For detailed information about Bitcoin mining: “How Much Money Does Bitcoin Mining Make?“