Crypto

“Get ready!” Bitcoin difficulty could hit an all-time high this week – World Today News

Since Bitcoin (BTC) prices may be in big trouble right now, miners seem to be positive about the future. This leads, among other things, to an increase in hashrate difficulty. In about two days, the latter should see its biggest rise since January of this year, which is a positive sign. However, there are a few short-term hiccups.

Bitcoin miners are recovering

The recent downward price movement had a big impact on all market participants. While many investors have seen their bitcoins become much cheaper, miners have also struggled. Due to falling prices combined with rising energy prices, the profitability of miners has been threatened.

Bitcoin mining company Blockbridge said yesterday that these negative conditions are hitting miners using old and inefficient machines especially hard.

Now that miners seem to be recovering a bit and hash rates are on the rise, this week’s difficulty will also increase. This increase is expected to be 7%. This is the biggest positive adjustment since January 2022. In fact, this is such a big adjustment that the difficulty could be an all-time high (ATH).

Bitcoin miners are having a hard time

These are positive signals. An increase in hash rate indicates that miners are turning on more efficient machines or new miners are entering the market. Increasing difficulty is also good for the security of the Bitcoin network. However, the latter is not necessarily a good development for miners, says Blockbridge:

“We see that the difficulty has jumped enough to reach a new (or almost new) ATH within a few days. This is great for network security, but unfortunately it also means a drop in the price of hash, especially with the drop in the price of bitcoin after Powell’s speech on Friday. If you remember from 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! »

The difficulty lies in the automatic mechanism, the purpose of which is to limit the time between blocks of transactions to 10 minutes. If more miners join the network, transaction blocks will be processed faster than the expected 10 minutes. In this case, the complexity increases and it becomes more difficult to mine bitcoins. It works the same way and vice versa; If the processing of a transaction block takes more than 10 minutes, the complexity is reduced.

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