[2023 is coming to an end, Bitcoin hits new records! 】
As the year draws to a close, Bitcoin is setting new records for its network’s hash rate. According to Com data, Bitcoin mining difficulty reached 72 megahashes, and the hash rate also increased to a record high of 544 EH/s.
Bitcoin’s hash rate has staggeringly more than doubled so far this year, rising 130% since January. During the same period, the price of Bitcoin also experienced strong growth, soaring from approximately $16,500 to $42,300, an increase of more than 150%.
High hashrate has a positive impact on price trends and network security. However, for individual miners, high hash rates pose greater challenges, especially in terms of profitability. Currently, miners’ profitability is declining even as hash rates reach all-time highs.
Bitcoin mining difficulty is an automatically adjusting mechanism that determines how difficult it is to mine a Bitcoin block. It is updated every 2,016 blocks and aims to maintain an average of one block every 10 minutes.
There is no direct correlation between Bitcoin price and mining difficulty and hash rate. Increasing mining difficulty makes the network more secure and increases competition among miners. When more miners participate, the mining difficulty usually increases, making it more competitive to mine new blocks. The profitability of miners mainly depends on the instant price of Bitcoin and the mining difficulty.
