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Bitcoin mining difficulty surpasses 80 trillion, and the hash rate reaches 562.81 EH/s

TL;DR

  • Bitcoin mining difficulty passed 80 trillion, hash rate hit 562.81 EH/s.
  • Halving in April halves mining rewards may decrease hash rate and difficulty.
  • Analysts foresee 20% of the hash rate going offline post-halving, affecting mining competitiveness.

Bitcoin mining difficulty hit a record high of 81.73 trillion on Friday, Feb. 16, surpassing the 80 trillion milestone. The network’s hash rate, a measure of total computational power, reached 562.81 exahashes per second (EH/s), according to BTC.com.

Steady rise in mining difficulty

Since January 2023, Bitcoin’s mining difficulty has seen a consistent uptrend, more than doubling in the last year alone. The difficulty level, which gauges the complexity of solving cryptographic puzzles in the mining process has steadily increased, reflecting the growing computational power required for mining operations.

In Bitcoin’s proof-of-work consensus mechanism, more serious difficulty translates to miners needing more computational power and energy to find the correct hash. This trend has significant implications, as it increases the resources required for mining and underscores the robustness of the network’s security.

Analysts project that Bitcoin’s mining difficulty will reach 100 trillion in the coming months, further highlighting the network’s resilience and the growing competition among miners.

Impact of Bitcoin Halving

The upcoming Bitcoin Halving scheduled for April will see mining rewards cut in half, from 6.25 BTC to 3.125 BTC. This reduction, programmed into Bitcoin’s protocol roughly every four years to combat inflation, is expected to profoundly affect the mining ecosystem.

Following the halving, there is a possibility of a decrease in the network’s hash rate as less efficient miners may find it challenging to sustain operations. This could lead to a significant portion of the current hash rate going offline as miners struggle to cover costs with reduced rewards.

Galaxy digital analysts’ projections

According to analysts at Galaxy Digital, as much as 20% of Bitcoin’s current hash rate could be taken offline post-halving, leaving only the most efficient mining rigs operational. This scenario could reshape the landscape of Bitcoin mining, favoring larger players with access to advanced equipment and cheaper energy sources.

A decrease in the hash rate will likely result in a subsequent decrease in Bitcoin mining difficulty. With fewer miners competing for block rewards, the network may adjust the difficulty level to maintain a steady block production rate of approximately one block every 10 minutes.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

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