As competition among miners intensifies, Bitcoin mining difficulty continues to set new high records, first breaking the 100 T (Trillion) barrier, which undoubtedly adds to the challenges for smaller miners with limited funds.
According to Mempool data, Bitcoin experienced a mining difficulty adjustment at block height 868,896, with the mining difficulty increasing by 6.24% to reach 101.65 T.
The purpose of designing Bitcoin's mining difficulty is to adjust the difficulty every 2,016 blocks mined, which is approximately every two weeks. Adjustments are based on changes in network hash rate to ensure that the Bitcoin network maintains the speed of resolving (or producing) one new block every 10 minutes.
Since the beginning of this year, the Bitcoin blockchain has undergone 23 difficulty adjustments, with nearly 60% of the adjustments being increases in difficulty, indicating that the overall mining process is becoming increasingly challenging. The higher the mining difficulty, the more intense the competition and the higher the mining costs, leading to an increased threshold for miners to produce Bitcoin.
Since Bitcoin mining requires a significant capital investment and is a highly competitive industry, smaller miners with limited funds may need to sell some Bitcoins to maintain operations; in contrast, publicly listed mining companies can raise funds more flexibly and are better equipped to handle these challenges.
Network hash rate hits a new high again
At the same time, the 7-day moving average (7DMA) of the Bitcoin network's hash rate also reached an unprecedented high of 755 EH/s last week.
According to Glassnode data, at the end of October this year, Bitcoin's hash rate surged nearly 12% in a single day, marking the largest increase of the year.
Currently, most miners sell the Bitcoins they mine to pay for operating costs. At the beginning of October this year, miners briefly retained some Bitcoins to strengthen reserves, used to offset the sell-off in August and September.
Currently, miners are averaging 450 Bitcoins mined per day. If all are sold, it is expected to bring about $31.5 million in selling pressure. However, overall, miners' financial situation remains relatively healthy. If they can reduce selling, it is believed this will stabilize Bitcoin prices.
"Bitcoin mining difficulty 'first breaks 100 T' hits a new high, small miners 'under great pressure'" This article was first published on (Block客).
