Record hashrate signals increased network security and miner participation.
Understanding Bitcoin Mining Difficulty
Bitcoin mining difficulty is a measure of how hard it is to find a new block in the Bitcoin blockchain. This difficulty adjusts approximately every two weeks to ensure that blocks are mined roughly every 10 minutes. Recently, Bitcoin’s mining difficulty reached an all-time high of 95.67 terahashes, marking a 3.9% increase.
What Does an Increase in Difficulty Mean?
An increase in mining difficulty indicates that more computational power is being used to mine Bitcoin. This is often a sign that more miners are participating in the network, which can be seen as a positive development for the security and stability of the Bitcoin network.
Record Hashrate and Its Implications
Alongside the increase in difficulty, the Bitcoin network has also experienced a record hashrate, exceeding 700 exahashes per second (EH/s) for the first time. The hashrate is a measure of the total computational power being used to mine and process transactions on the blockchain. A higher hashrate generally means a more secure network.
Historical Trends and Future Predictions
Historically, when the 365-day simple moving average of total miner revenue is achieved, it often signals upcoming bull runs in Bitcoin. This pattern suggests that the current rise in mining difficulty and hashrate could potentially lead to an increase in Bitcoin’s price.
