The difficulty of Bitcoin (BTC) mining has reached 100 trillion (100T) for the first time in the cryptocurrency industry, which is a historical record. This speaks to the current competitiveness of mining and shows just how much computation is needed to mine bitcoins. The new record was set with a 7-day average hash rate amounting to 755 EH/s, which is defined as the total computational power invested in the Bitcoin blockchain.
Bitcoin mining difficulty tops 100T for the first time.$BTC mining difficulty has reached a record 100T, with the 7-day average hashrate peaking at 755 EH/s. This increase adds pressure on smaller miners, who face tougher competition from larger players. pic.twitter.com/fO7GguxGkg
— Satoshi Club (@esatoshiclub) November 5, 2024
What Does This Mean for Bitcoin (BTC) Mining?
Mining difficulty is a parameter that is changed every two weeks to ensure that the time it takes to produce blocks in the Bitcoin network is equal to 10 minutes despite variations in network hash rate. When more miners and computational power are added to the network, the difficulty of controlling the amount of Bitcoins issued rises. However, This latest adjustment suggests a net increase in the mining difficulty, which means more traffic is coming into the network, most probably by better and more efficient mining hardware, cheap electric power, and better mining returns.
The difficulty level in Bitcoin (BTC) mining hits 100T, making the network more secure than ever. However, this also creates additional pressure on miners, especially the small or independent ones that may not rival the bigger mining conglomerates.
Impact on Smaller Miners: A Growing Challenge
As the difficulty rises, small miners will likely earn smaller profits because the cost of mining one BTC rises with each difficulty level. High difficulty helps the network to become more secure and less prone to attacks, and some small miners could exit the mining industry because of the corresponding problems with the profitability of mining that come with the increase in the mining difficulty level.
Companies with massive resources and funding equipped with modern equipment and technology may be in a better position to continue operations amidst increased difficulty in mining.
Driving Forces Behind the Increased Hashrate
The recent hash rate of 755 EH/s indicates the increasing demand and capital investments toward mining Bitcoins, even in fluctuating BTC prices. There are many reasons for this: expected further price growth, improvement in mining equipment, and favorable conditions for energy consumption in some regions. This led to many mining companies continuing to grow their businesses and buying more hardware for energy efficiency to get the upper hand over other competitor companies. Considering the increasing mining difficulty level, the market is likely to grow further. Technological advancement in mining equipment and an increase in renewable energy utilization may offset the competitiveness.
