Bitcoin’s Mining Difficulty Reaches Record High
The mining difficulty of Bitcoin reached a historic level on Dec. 23, 2023, reaching a staggering 72.01 trillion. This significant increase of 6.98% marks the most substantial escalation in nine months since March 23. The difficulty refers to the specific target hash value that miners aim to achieve when mining cryptocurrency.
Surge in Mining Difficulty and Predictions for the Future
With the new difficulty level, miners are facing the challenge of generating a hash value lower than the threshold to successfully mine a new block. The next difficulty adjustment is expected to take place around Jan. 5, 2024, after this recent 6.98% rise.
Hashrate Reaches All-Time High
Corresponding to the spike in difficulty, the hashrate of the Bitcoin network has also reached new heights, achieving an all-time high on Dec. 24, 2023. The seven-day simple moving average (SMA) of BTC’s hashrate has reached 538 exahash per second (EH/s), according to data from Luxor’s hashrateindex.com. Previously, the network reported a peak of 527 EH/s on December 20.
Major Mining Pools and Anticipated Halving Event
Currently, around 50 mining pools are contributing a significant amount of SHA256 hashrate to the BTC network. Foundry USA holds the largest share, contributing 32.30% or 173.55 EH/s of the total hashrate. Antpool follows closely behind with 26.95% or 144.81 EH/s. These two pools together dominate with 59.25% of Bitcoin’s aggregate hashrate. The anticipated halving event is predicted to happen around the end of March or the beginning of April 2024, with just over 17,000 blocks remaining until then.
Expansion of Bitcoin Mining Operations
The surge in hashrate aligns with the significant expansion of bitcoin mining operations. ASIC manufacturers have unveiled next-generation mining rigs throughout 2023, and mining entities have incorporated these new machines into their operations, significantly increasing efficiency. This expansion has been supported by a notable investment surge, with publicly listed mining companies spending $600 million on new machinery in December alone. In total, these companies have expended $1.3 billion on ASIC acquisitions over the year.
Hot Take: The Rising Difficulty and Expanding Mining Operations
The recent surge in Bitcoin’s mining difficulty, reaching a record level of 72.01 trillion, highlights the growing challenges faced by miners. As the difficulty continues to rise, it becomes more arduous to mine new blocks and receive block rewards. This difficulty hike is paralleled by the expanding hashrate, indicating the increasing activity and investment in Bitcoin mining operations. With the introduction of next-generation mining rigs and substantial investments, mining entities are striving to enhance efficiency and competitiveness. The future of Bitcoin mining remains exciting and filled with new developments as technology continues to advance in the crypto industry.
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