For the world’s leading cryptocurrency, Bitcoin, 2022 has been filled with many crests and troughs. Different challenges have presented Bitcoin with a new twist on performance and sentiment. BTC was the victim of a crypto winter, which saw its value drop by half for most cryptocurrency assets.
Though the beginning of the year’s second half brought a little bullish trend, the bears were still quick to take over. But that’s not all it is on the world’s largest cryptocurrency by market cap. There are many more trends and parameters being discovered in Bitcoin.
Mine Difficulty Rises
Bitcoin mining difficulty adjusted by 9.26%. The current Bitcoin mining difficulty adjustment is the largest increase in value since January 2022. BTC.com data showed that Wednesday’s BTC mining difficulty recovered its value, reaching 30.98 Trillion. As of August 28, this was up against 28.35 trillion.
BTC.com released some predictions about the future difficulty adjustment of Bitcoin. The forecast showed that BTC would see a fourth within 13 more days. The next adjustment will be more gradual and reach 31.16 trillion. If the estimated difficulty occurs, it will spar with the 31.25 trillion of May 10, BTC’s most significant problem.
Additionally, BTC.com provided data on the historical BTC’s mining difficulty from its launch. The last mining adjustment increase was more than the expected growth rate of 7%. Apart from the notable increase of 9.26% since January 21, this data shows the next follow up in percentage growth.
Bitcoin Mining Difficulty and Hashrate
It would be difficult to decompose Bitcoin from its BTC hashrate if the Bitcoin mining difficulty was calculated. An increase in BTC mining difficulties is equal to a higher hash rate or vice-versa. Mining difficulty is the sum of all computational problems encountered while mining Bitcoin.
BTC’s hash rate was further affected by the bearish market trend, and the May collapse of Terra. The drastic fall in Bitcoin prices is responsible for this. From an ATH of 253EH/s June, to 170ET/s by August, the hash rate plunged. To rip off these effects, many miners sold their BTC holdings.
Mining BTC involves miners acquiring transactions and hashing them. The hash rate can be determined by how many hashes miners produce in total. This is how new blockchain blocks are created. It is anticipated that the hash will remain at a lower level than its mining difficulty.
Mining becomes more efficient and quicker when the hash rate rises. This happens most often when Bitcoin is at a higher price. For a drop in hash rate, it is reversed.
BTC mining difficulty compensates for any swings in the hash rate by adjusting every 2016 block. This adjustment occurs fortnightly. The average block is produced every 10 minutes.
Featured image taken from Pixabay. Chart from TradingView.com