Crypto

Bitcoin Mining Difficulty Poised for Record Increase in 2023

courtesy of bitcoinist.com

On-chain data shows sixth consecutive increase

The Bitcoin mining difficulty is on track to set a new record for 2023, according to on-chain data. The difficulty refers to a feature on the blockchain that controls how hard it is for miners to mine blocks. Data from CoinWarz indicates that the difficulty is set to see another adjustment over the upcoming weekend.

Why does the difficulty increase?

The main reason for the difficulty increase is to maintain a network-standard rate of one block per 10 minutes. Without the difficulty feature, miners could increase their computing power indefinitely, leading to faster block times and potential inflation. By increasing the difficulty, miners are slowed down to the desired pace, ensuring the stability and value of the asset.

Recent hashrate growth drives faster block times

The recent increase in block times can be attributed to the explosive growth in hashrate, which is the total computing power of miners. With the surge in price and transaction fees, miners have been capitalizing on the profitable opportunity. As a result, the hashrate has been setting new all-time highs, leading to consecutive increases in the difficulty.

Setting a new record

With another positive adjustment expected over the weekend, the Bitcoin mining difficulty will achieve a sixth consecutive rise, breaking the 2023 record. Currently trading around $37,800, Bitcoin is gearing up for another attempt at the $38,000 mark.

Trending

Exit mobile version