The value of Bitcoin is nearing its all-time high of $73,700, leading the community to expect a new record. Not only investors but Bitcoin miners are also excited. Reports from CryptoQuant show that the mining difficulty and hash rate of the network have reached new highs. This indicates increasing competition in the mining ecosystem.
- Bitcoin uses a proof-of-work (PoW) consensus mechanism to add transactions to the blockchain. Mining difficulty and hash rate are essential factors ensuring the stability of the network.
- As difficulty increases, more computational power is needed to process transactions, raising mining costs. This creates challenges for small-scale miners.
- Some miners have been searching for new strategies to survive. TeraWulf sold 25% of its stake in a joint venture, raising $92 million to enhance mining operations. Meanwhile, BitFuFu acquired a mining facility in Ethiopia, increasing capacity to 80 MW.