The Bitcoin Mining Difficulty has grown by more than 17 percent in the last 30 days and has reached a new all-time high (ATH) for the network.
As the data from bitcoinity.org shows, the Bitcoin Mining Difficulty has reached an all-time high of 7.46 T. The ATH for the network has increased by more than 17 percent in the last 30 days. This exceeded the previous all-time high of 7.45 T at the beginning of October 2018. The all-time high means that the network is now more secure than ever. The difficulty relates to the processing power with which Miner must solve the cryptographic equations required to “mine” a new block in the network.
In addition, the all-time high disproves the “Mining Death Spiral” propagated by mainstream media at the end of 2018, when the lucrativeness of Bitcoin to mine drastically decreased and numerous miners had to shut down their equipment. This was at a time when BTC reached a 2018 low of USD 3,100.
- The recent increase in mining difficulty is directly related to the increase in miners in the BTC network, which means that the number of miners in the Bitcoin ecosystem is increasing.
- Bitcoin’s hashrate has also increased steadily since December 2018, after the hash rate reached a very low level in 2018 due to Bitcoin’s price decline.
- Currently, the hash rate for Bitcoin is around 58 TH/s, 2 TH/s away from reaching an all-time high.
An argument for a bull market
It has long been argued that a rising Hashrate and Bitcoin Mining Difficulty are a bullish sign. The rising hash rate shows that the mining industry is booming and has positive expectations of the Bitcoin price.
The hashrate describes the computing power of the Bitcoin network to solve the mathematical arithmetic operations required for security reasons before a block is written into the block chain. The hashrate reflects the number of attempts a unit can make to solve the arithmetic operation. Since mining is known to be very costly and consumes a lot of electricity, miners must always keep an eye on profitability. A bigger Mining Difficulty means a bigger competition and therefore a lower probability to mine a Bitcoin.
Hashrate and Mining Difficulty are therefore important factors in addition to price. As the Hashrate increases, the degree of difficulty increases and this in turn results in the miners earning a lower amount of BTC and a lower portion of the transaction fees. The fact that the hashrate continues to rise shows, according to many experts, that miners are more bullish than ever and expect further price increases in the near future.