Bitcoin Mining Difficulty Reaches New High at 101.6T
Bitcoin mining difficulty has reached a new all-time high of 101.65 trillion, marking a nearly 15% increase, raising concerns about competition and sustainability in the mining industry.
Recent statistics reveal that Bitcoin (BTC) mining difficulty has surged to an unprecedented level of 101.65 trillion at block 868,958. This significant increase comes just two weeks after the previous high of 95.67 trillion.
BTC Mining Difficulty Increases by Nearly 15%
According to data from Bitcoin analytics platform CoinWarz, BTC's mining difficulty has risen sharply to a historic high of 101.65 trillion, marking a 14.98% increase over the past month. The data shows a 6.24% jump in the last week and a 12.11% rise over the past 90 days.
Mining difficulty reflects the challenges miners face in creating the next block on the blockchain. It measures the average number of hashes needed to find a valid solution for the next block and earn the associated mining reward. This metric adjusts every two weeks to ensure blocks are mined at a consistent rate, increasing if previous blocks are mined faster than the specified block time.
Bitcoin's global hash rate also reached a record high of 945.07 EH/s (ExaHash per second) in October, according to CoinWarz. Although this number has since decreased to 732.35 EH/s, it still represents a 6.32% increase over the past 30 days.
The next adjustment in mining difficulty is expected on November 19, 2024. Analysts from CoinWarz predict a decrease to approximately 96.20 trillion after 1,951 more blocks are mined, which is roughly 14 days from now.
Concerns Over Rising Mining Difficulty
CryptoQuant has suggested that the increase in Bitcoin's hash rates and mining difficulty may be due to a rise in the number of mining machines. The analytics platform also highlighted intensified competition in Bitcoin mining, which could lead to higher mining costs.
Market analyst Yonsei_dent from CryptoQuant expressed concerns about the mining industry's sustainability, stating that the intense competition is jeopardizing the sector, particularly since transaction fees are limited. Without sufficient transaction fees to cover operational costs, miners may face increased financial pressure, affecting the long-term viability of the Bitcoin network and its mining ecosystem.
Moreover, a recent report from JP Morgan, cited by Finance Magnates, indicated a continued decline in revenue from Bitcoin mining activities for the fourth consecutive month in October. The report noted that, on average, Bitcoin miners earned $41,800 per EH/s hash rate daily, reflecting a 1% decrease compared to September.
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