Already at the beginning of 2020 Bitcoin mining difficulty got adjusted and the hash rate reached another all-time high. Are the Bitcoin miners capitulating with the increased mining difficulty?
16 January, 2020 | AtoZ Markets – Bitcoin (BTC) mining difficulty and hash rate have reached new all-time highs. It seems that the miners are capitulating ahead of the Bitcoin mining reward halving in May. According to CoinMetrics data, the difficulty increased by 7% after the adjustment. Moreover, Bitcoin hash rate reached the all-time high of 14.8T.
2020 Bitcoin Mining Difficulty Will Only Increase More
Even before the 2020 Bitcoin mining difficulty adjustment occurred, the crypto industry was very busy discussing the effects it could have on the market. The term “difficulty” often use, but few understand how significant it is for Bitcoin. It represents the number of hashes, or necessary solution to a complex mathematical problem that is needed to create a new block.
The higher the computing power of the network means that the faster new blocks are discovered. So, the difficulty adjusted every 2,016 blocks or about two weeks. As mining difficulty increases, competition increases, and it becomes increasingly difficult to earn rewards from mining. And usually, the harder it is to earn rewards, the more expensive Bitcoin becomes.
Following the latest adjustment, Bitcoin’s mining difficulty has reached an all-time high. Moreover, Bitcoin’s mining difficulty is now more than three times higher than 15 January 2019.
Bitcoin Hash Rate Reaches All-Time High
Bitcoin hash rate reached a new record of 120 475 000 TH/s, an electricity comparable to 1.65 million Antminer S17+ on 7 January. This Antminer Crypto Miner Hardware is the most effective ASIC device available on the market.
Bitcoin has seen hash rate experience a continuous 185 percent improvement almost every year. The trouble, a metric illustrating the complexity, also made an unprecedented escalation in 2019, from 5.6 T to 13.8 T, an increase of 146%.
The growing hashrate and growing difficulty mean that Bitcoin miners are still standing. Many analysts have predicted that the impending halving will push most of the miners out of the network and decrease the hash rate. So, most small and medium players in the space will try to cut their losses before the rewards are cut in half.
However, the numbers speak for themselves, and there is still no sign of miners capitulating. Chinese Bitcoin miners’ controls 66% of global hashrate. But recently, Bitcoin’s hashrate has increased, and mining has decreased in China.
Do you think that Bitcoin mining difficulty and hash rate will continue to increase? Let us know in the comments section below.