Bitcoin mining difficulty reaches new ATH after record-breaking 7.3% surge

Bitcoin mining difficulty reached an all-time high on February 2, reaching 75.50T at block height 828,576. This comes less than a month after the previous record increase on January 6th.

Mining difficulty has increased significantly this year to the highest of 7.33%, marking the most difficult period in Bitcoin mining history. This milestone highlights the growing challenges and computational demands facing miners on the Bitcoin network as the next halving approaches.

Half life soon

The recent mining difficulty adjustment is part of the network’s regular mechanism to maintain a consistent block discovery time of approximately 10 minutes. This increase reflects a notable change from the previous adjustment on January 20, 2024, when difficulty was reduced by 3.90%.

The Bitcoin network undergoes difficulty adjustments approximately every two weeks, adapting to changes in the network’s computational power to ensure reliable and secure block discovery. With difficulty now reaching 75.5 trillion, the criteria for mining a valid Bitcoin block have become more stringent, requiring more computing effort and resources from miners.

This increase in difficulty comes as the Bitcoin community anticipates the fourth halving event, which is expected to occur in less than 11,500 blocks. Halving will reduce the reward for mining a new block from 6.25 Bitcoins to 3.125 Bitcoins, further intensifying competition among miners for reduced rewards.

Hashrate Strength

Despite the increase in difficulty, the Bitcoin network’s collective hash rate remains strong, averaging 536 EH/s per second compared to the 7-day simple moving average. This is close to the all-time high of 566EH/s. Reached January 29, 2024.

Mining power within the Bitcoin network is concentrated in a few major pools, with Foundry USA and Antpool jointly controlling over 60% of the total hashrate. Foundry USA is currently the leader contributing 31.94% to network computing power, followed by Antpool.

The next mining difficulty adjustment is scheduled for February 15, 2024. The mining community will be watching this adjustment closely as they navigate the increased difficulty and prepare for the impending halving event. Both are poised to have a major impact on the economics of Bitcoin mining.

The record mining difficulty highlights the competitive nature of Bitcoin mining and the continued growth and resilience of the Bitcoin network. As miners adjust their operations to new levels of difficulty, the broader implications for cryptocurrency markets and network security will continue to be a focus for stakeholders.