March 7, 2021

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Bitcoin mining difficulty increased 6.8% and that’s great news before halving!

1 min read
Bitcoin mining difficulty increased 6.8% and that's great news before halving!
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Bitcoin mining is often a very misunderstood activity. This is how ensures the functioning of this payment network. With mining, for example, you cannot steal Bitcoin from a foreign wallet without a private key or use the same coin twice. This revolutionary mechanism was devised by Satoshi Nakamoto himself and still works very well after eleven years.

 

However, there is a problem during mining. If new miners are added to the network, the difficulty of extraction must increase so as not to increase BTC inflation too much. Just as miners leave the network, the difficulty decreases so that the network is not too slow.

 

Increasing difficulty is bullish for Bitcoin

 

The difficulty is calibrated every 2016 blocks (about once every two weeks). It happened yeterday, rising by a record 6.8%. At the same time, the Hashrate reaches a new ATH. Currently it is around 125 Exahashes.

 

Bitcoin mining difficulty increased 6.8% and that's great news before halving!

Bitcoin mining difficulty increased 6.8% and that's great news before halving!

 

This suggests, among other things, that the amount of miners and hashrate networks is still growing. Even though it is approaching halving, it will cut the rewards for mining in half.

 

After halving, the profitability of mining will be only half. But the miners obviously are not afraid of this and are constantly plugging in new machines and relying on the Bitcoin price to catch up.

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