The mining difficulty for Bitcoin has been on the increase for some time now, as the most recent adjustment shows a 5.56% increase on April 27.
The new development has pushed the mining difficulty for Bitcoin to a new high, indicating that miners and investors are finding the mining ecosystem attractive enough to take a plunge. For emphasis, Bitcoin mining adjustment is the most critical metric used to measure the volume of activity in the Bitcoin network.
A New All-time High for Bitcoin Mining
On April 27, a new record was set for the Bitcoin mining rate as it shows that a new all-time high was achieved for the flagship cryptocurrency. There is an upward adjustment in the mining rate following a reduction of 1.26% on April 14.
Therefore, the latest increase shows that the Bitcoin network has gained significantly in mining difficulty leading to a new all-time high for the pioneer digital currency.
The new development indicates that miners quickly process mining blocks in less than 10 minutes on average per mining session. Accordingly, the Bitcoin network automatically adjusts itself to maintain the supply of Bitcoin in line with the current protocol in place.
However, there are times when the mining difficulty adjusts to moving faster and slower. The greater the mining problem, the more difficult it would be for miners to mine new blocks. Here, only the miners that prove to be efficient in their operations are more likely to succeed in their endeavors.
Suppose the mining difficulty keeps increasing because new miners are moving into the market. In that case, the only categories of miners who can succeed at this stage are those with the most efficient mining operations.
High Mining Rate Helps Improve Security
Due to the recent high mining rate difficulty experienced by the Bitcoin network, it would require a great deal of mining energy to breach the security of the Bitcoin network. That is, the network has never been more secure than it is now.
Another interesting thing worth noting is that, from the perspective of economics, it makes no sense for any third party to attempt to hack into the Bitcoin network because of the enormous financial outlay required for such an audacious move.
The increase in the hash rate of the Bitcoin network is responsible for the adjustment in the mining difficulty, which is a sure sign of more progress for Bitcoin. Moreover, should the hash rate continue to grow even further, the network will experience another adjustment in its mining difficulty, which would propel Bitcoin to new highs.
In contrast to last year’s peak, the current rate is 22% higher, which explains why the mining difficulty is adjusted to meet the growth trajectory of the network.
After the ban on Bitcoin mining in China, there existed a mass movement of miners to other countries, which disrupted the mining periods of last year, leading to a drop in the hash rate.