According to data from BTC.com, significant changes have occurred in the Bitcoin mining field, as reported by Golden Finance. At block height 899,136, which is 08:01:30 Beijing time today, Bitcoin has undergone a mining difficulty adjustment. The mining difficulty has significantly increased by 4.38% to 126.98T, setting a new historical record. Meanwhile, the current average computing power of the entire network in the past seven days is 921.04 EH/s.
The mining difficulty of Bitcoin is not fixed but is dynamically adjusted based on specific algorithms. Its adjustment mechanism is designed to ensure that for every 2016 blocks generated by the Bitcoin network (approximately two weeks), the generation time of new blocks can be stably maintained at about 10 minutes. If the number of blocks generated by the Bitcoin network exceeds 2,016 in the past two weeks, it indicates that the block generation speed is too fast. To restore the block generation time to normal, the system will accordingly increase the mining difficulty. Conversely, if the number of generated blocks is less than 2,016, it indicates that the block generation speed is too slow, and the system will reduce the mining difficulty.
This time, the mining difficulty has been raised to a record high, which reflects the continuous and strong growth of the computing power of the Bitcoin network. As the performance of Bitcoin’s price in the cryptocurrency market becomes increasingly outstanding, it has attracted a large number of miners to join in. They constantly invest in new mining equipment and enhance their computing power to compete for Bitcoin mining rewards. For instance, in recent years, the technology of Bitcoin mining machines has been continuously iterated and upgraded. From the early CPU and GPU mining, it has gradually developed to the more powerful ASIC dedicated chip mining machines of today, and the computing power of individual mining machines has been significantly enhanced.
A large number of large-scale mining farms have been set up all over the world, concentrating a large number of advanced mining machines, all of which have driven the rapid growth of the entire network’s computing power. When the total computing power of the entire network increases, miners need to invest more computing resources and time to successfully mine Bitcoin, which in turn leads to a continuous rise in the difficulty of mining.
For miners, the significant increase in mining difficulty undoubtedly raises the cost and challenges of mining. When the mining difficulty increases, miners need to invest more electricity costs to keep the mining machines running in order to obtain the same amount of Bitcoin as before. Because mining machines consume a large amount of electrical energy when performing complex hash operations, and as the difficulty increases, the operation time of mining machines is prolonged, and the power consumption also rises accordingly.
Furthermore, in order to maintain an edge in the competition, miners may also need to constantly upgrade or replace their mining machines with more powerful ones, which further increases the initial equipment investment cost. Take a mainstream mining machine with a computing power of 14T as an example. When the mining difficulty is relatively low, it may be able to mine a certain amount of Bitcoin within a certain period of time. However, as the difficulty increases, the probability of mining Bitcoin within the same period of time drops significantly, and the income also decreases accordingly.
From a market perspective, changes in the difficulty of Bitcoin mining have a certain impact on the entire cryptocurrency market. On the one hand, the increase in difficulty may prompt some miners with weaker capabilities and higher costs to withdraw from the mining market, which to some extent will reduce the market supply of Bitcoin. Because these miners may find it difficult to maintain operations when facing high costs and low returns, they have to stop mining activities, which in turn leads to a reduction in the output of Bitcoin.
On the other hand, the increase in mining difficulty also sends a signal to the market that the Bitcoin network remains active and highly attractive. Despite the increased mining difficulty, there are still many miners actively participating, which indicates that the market remains confident in the future value of Bitcoin. This may attract more investors to pay attention to Bitcoin and related cryptocurrency fields, further promoting the development and maturity of the market. Subsequently, the market will continue to closely monitor the trend of Bitcoin mining difficulty and its profound impact on miners, the price of Bitcoin, and the entire cryptocurrency market.
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