Bitcoin’s journey faced a notable milestone on Sunday, November 12, 2023, as its difficulty metric witnessed a 3.55% surge, reaching an unprecedented peak of 64.68 trillion at block height 816,480. This uptick marks the fifth consecutive rise in difficulty since the notable 5.48% increase on September 19, painting a picture of an evolving and increasingly challenging mining landscape.
Bitcoin difficulty metric hits a peak of 64,68 trillion
The intricate dance between miners and the algorithmic complexities of the Bitcoin network is evident in the series of adjustments. The climb began with a 5.48% spike on September 19, signaling a shift in the dynamics of mining. Following this, a modest 0.35% increase on October 3 hinted at a nuanced balance in the forces governing the network. However, the scene took a more pronounced turn with a substantial 6.47% surge on October 16, emphasizing the competitive nature of mining in the evolving ecosystem.
The subsequent 2.35% increase on October 29 further solidified the narrative of an ever-increasing computational challenge. The current difficulty level, surpassing the 64 trillion mark, underscores the daunting challenge miners face. To earn a Bitcoin block reward in this environment, miners must deploy immense computational power to generate a hash that falls below a specific threshold. The recalibration of this difficulty metric every 2,016 blocks aims to maintain an average block interval of approximately ten minutes, contributing to the stability of the network.
The heart of Bitcoin’s mining prowess lies in its hashrate, representing the total computational power dedicated to securing the network. Over the last three months, Bitcoin’s hashrate has maintained an average of 423.1 exahash per second (EH/s). The seven-day simple moving average (SMA) as of November 12 points to a hashrate of approximately 461 EH/s, highlighting the dynamic nature of the network’s computational power. A diverse landscape of 46 mining pools contributes to Bitcoin’s hashrate, with two leading the pack.
Hashrate dynamics and the countdown to halving
Antpool commands 116.91 EH/s, representing 25.8% of the total network hashrate, while Foundry USA closely follows with 114.98 EH/s, contributing 25.37% to the combined hashrate. This distribution emphasizes the decentralized nature of Bitcoin mining, with various pools contributing to the network’s security. The countdown to the next halving epoch adds layer of anticipation to the mining landscape. With approximately 23,500 blocks remaining until the expected halving on April 20, 2024, miners navigate a dynamic environment.
Bitcoin mining profitability, influenced by the coin’s value and transaction fees, experienced an upward trend in October. The average transaction fee peaked at $15 on November 9, 2023, as reported by bitinfocharts.com. The current average transaction fee stands at 0.00018 BTC or $6.76 per transaction, contributing to miners’ overall revenue. Looking forward, the estimated next difficulty change on November 25, 2023, adds a temporal dimension to the mining landscape.
As miners adapt to these shifts, the intricate interplay between difficulty, hashrate, and market dynamics continues to shape the evolving narrative of Bitcoin mining. The journey unfolds against a backdrop of increasing computational challenges and the quest for block rewards, illustrating the resilience and adaptability of the Bitcoin network and its participants.