- The Bitcoin Network Difficulty is at its new all-time high despite the BTC price hitting its six-month low this week. The difficulty entered a new undiscovered territory above $26 trillion as the new automated readjustment added 9.32% to its previous level.
- A cryptocurrency journalist and commentator, Colin Wu noted that the appreciation has reached its six-month high. Late August saw the adjustment of more than 10% as per the data by BTC.com.
- The hash rate is the computation of the processing power that miners assign to the blockchain. According to MiningPoolStats, it currently sits at 192 examhashes per second (EH/s), on Jan 10 it reached 218 EH/s.
The BTC might have dropped to its six-month low this week, the network is now stronger than it’s ever been.
The Bitcoin Network Difficulty is at the latest all-time high, confirmed the Data from on-chain monitoring resources as that of BTC.com and Glassnode.
Difficulty Crosses 26 trillion for the first time
The difficulty is the amount of work miners need to do for processing transactions on the blockchain. It is undoubtedly among the most significant fundamental Bitcoin network components.
The metric automatically regulates the mining effort to high or low, according to Miner Participation. A higher difficulty indicates there is high competition among miners.
This has the consequence of keeping mining stable despite factors such as price, sentiment, and unintended incidents.
As the new automated readjustment added 9.32% to its previous level, it took difficulty the rest of the year to get back after dipping in mid-2021. With that, it entered an undiscovered land above 26 trillion.
Colin Wu, cryptocurrency journalist, and commentator observed that the appreciation is the highest in over six months. According to the BTC.com data, late August witnessed the last adjustment of over 10%.
BTC Price Dip Unsuccessful in Defeating Miner Resolve
Reasonably, the difficulty followed the hash rate higher, this having set new records high last year.
The hash rate is a measurement of the processing power dedicated to the blockchain by miners. At the moment, it is hanging around 192 examhashes per second (EH/s), on Jan 10 it reached 218 EH/s, according to MiningPoolStats.
Age-old Holders follow the old mantra that “price follows hash rate”. However, as the fundamentals are moving opposite to spot price, this trend is taking a back seat.
The increasing hash rate signifies that there remains no longer timeframes, miner optimism over the profitability of their operations. Last week, calculations disclosed that their break-even point is going to be around $34,000.