‘show yourself!’ Bitcoin difficulty may hit a record level this week

The Bitcoin (BTC) price They may be having a lot of difficulty at the moment, it seems that the miners have a positive outlook for the future. This is evidenced, among other things, by the increase Hash rate And the difficulty. In about a couple of days, the latter is likely to see its biggest increase since January of this year, which is a positive sign. However, there are some short-term obstacles.

Bitcoin miners are recovering

The recent bearish price movement had a huge impact on all market participants. As many investors saw their bitcoins become significantly less, miners also had a hard time. Due to lower prices as energy prices rose, the profitability of miners was at increased risk.

He. She Bitcoin mining The company Blockbridge allows the file Modernization You learned yesterday that these negative conditions are a particularly big blow to miners using old, inefficient machines.

Now that miners seem to be recovering somewhat and the hash rate is on the rise, the difficulty will also rise this week. That increase will anticipation up to 7%. This is the largest positive adjustment since January 2022. In fact, it is such a large adjustment that the difficulty High All Time (ATH) can be placed.

Bitcoin miners are having a hard time

They are positive signs. The increased hash rate shows that miners are either operating more efficient machines, or new miners are entering the market. The increased difficulty is also beneficial to the security of the Bitcoin network. However, the latter is not necessarily a good development for miners, says Blockbridge:

“We can see the difficulty jump enough to reach a new (or nearly new) ATH in a few days. It’s great for network security, but unfortunately also means a lower hashrate, especially with the bitcoin price dropping after Powell’s speech on Friday. If you remember our last update, the average mining cost increased by 22% in the second quarter. Get ready for tougher weeks ahead as profitability comes under pressure! “

Difficulty is an automated mechanism that aims to limit the time between transaction blocks to 10 minutes. If more miners join the network, transaction blocks will be processed faster than the intended 10 minutes. In this case, the difficulty increases and it becomes more and more difficult to mine bitcoins. This works the same way. If it takes more than 10 minutes to process a transaction block, the difficulty decreases.