Bitcoin mining difficulty is reaching new heights as the BTC/USD pair reaches a yearly peak. However, there’s no dearth of mining activity as the hashrate has also peaked in recent days. There were speculations that BTC mining would decline after halving event in May 2020. Well, the miners are increasing in number, and there’s no stopping the crypto king.
Bitcoin mining difficulty refers to the processing power required to mine one Bitcoin. Miners are spending more to earn BTC even as the rig prices are soaring as well. Also, the BTC.com report suggests that Bitcoin mining difficulty is set to get harder and increase by 3 percent in the next adjustment to touch 17.45 T mark.
Bitcoin mining difficulty is unlikely to decrease mining activity
In July, the Bitcoin mining difficulty reached 17.35 T. Since then; it has averaged above 16 T. Bitcoin hashrate is increasing but facing trouble currently due to the flooding in Sichuan province. China is home to the bulk of BTC mining activity, and Sichuan is key to maintaining BTC hashrate. Incessant floods in Sichuan have temporarily affected mining farm activity.
Many large-scale mining farms have experienced disruptions due to electricity issues and equipment damage. Also, the lack of personnel to man the farms is further aggravating the fluctuations in hashrate. Poolin, one of the largest BTC mining farm, said that the disruption could continue for the next few days.
If hashrate restores, mining difficulty will continue its rise
According to data released by BitInfoCharts.com, a hashrate decline of 4 percent has been noticed in the past 24 hours. In comparison, Bitcoin mining difficulty has an adjustment period of two weeks to accommodate for 10-minute block time.
As the BTC/USD pair touches $12,000 mark, miners are more focused on spending their BTC.