The Bitcoin universe is booming. If its prices on the markets arouse interest, it is now mining that is in the spotlight, indeed according to the latest reports: mining Bitcoin has never been so difficult.
With growing popularity, the competitiveness to mine this valuable digital asset is reaching unprecedented heights. As the hash rate explodes, mining Bitcoin becomes an unprecedented challenge.
The explanation behind the rise in difficulty
The difficulty of mining Bitcoin is not determined by the price of the latter, contrary to what one might think.
In fact, it is analyzed by the amount of computing power invested in the network. As the number of mining units increases, the difficulty of mining Bitcoin also increases.
💥#Bitcoin Mining Difficulty just hit a new ATH! pic.twitter.com/2F6W6NheMW
— Crypto Rover (@rovercrc) August 24, 2023
To further illustrate this phenomenon, data from CoinWarz reveals a mining difficulty of 55.62 trillion hashes, surpassing the previous peak of 53.9 trillion hashes recorded on July 17 of this year.
A Growing technological rivalry
In the effervescent world of crypto, the conjuncture evokes an intense rivalry. Hut8, Canaan, and Riot, to name a few, are working to increase their mining capacity in anticipation of the next Bitcoin halving.
Meanwhile, industry titans in China, such as Antpool, are showing a remarkable acceleration in their hash rate, illustrating a vitality in the sector not seen in months.
Whatsminer, actively participating in this effervescence, has already brought its most recent devices to market, thus reinforcing the formidable global power of the network. This momentum, characteristic of the crypto world, reaffirms the vigor and determination of the players involved:
With courtesy, we salute the ingenuity and perseverance of these companies that are constantly redefining the boundaries of blockchain technology.
The market and parallel developments
Although the valuation of Bitcoin on the stock markets is not an exact mirror of the reigning animation in the field of mining, it is obvious that the economic consequences, such as the debacle of Evergrande have their influence.
The chilling reaction of investors to this situation and many others led Bitcoin to lose 10.8% of its value in the space of seven days.
However, the mining sector operates at its own pace, often showing itself unaffected by the vagaries of market prices. Thus, multiple facilities dedicated to the blockchain have emerged thanks to funding granted well before their actual deployment.
Statistics and Outlook for Mining Bitcoin
Beyond the difficulty, other parameters are on the rise, such as the hash rate which reflects the computing power of the Bitcoin network. This power is used by mining rigs to validate transactions and add new blocks to the blockchain.
These miners are rewarded in Bitcoin for their painstaking work, hence their incentive to act quickly and efficiently.
Currently, the Bitcoin network is making 446 quintillion decryption attempts every second, an impressive figure although down slightly from the start of the month.