Bitcoin mining difficulty increases as miners purchase new equipment


  • Bitcoin mining difficulty has undergone a massive increase reaching 72.01 trillion.
  • Hashrate hits an all-time high amid technological advancements.

In late December 2023, the landscape of Bitcoin mining underwent a significant transformation as the mining difficulty reached an unprecedented level. At block height 822,528, the difficulty surged by 6.98%, marking the most substantial increase in nine months since March 23. This surge set a new record, making the process of discovering block rewards more challenging than ever, with the difficulty peaking at an extraordinary 72.01 trillion.

Bitcoin mining difficulty sets new all-time high record

The ascent in mining difficulty represents a considerable leap from 67.30 trillion to the strenuous 72.01 trillion. This metric, known as Bitcoin’s mining difficulty, is determined by a specific target hash value that miners aim to achieve. With a difficulty level of 72 trillion, miners must generate a hash value below this threshold to successfully mine a new block. Following this 6.98% increase, it is anticipated that the next difficulty adjustment will occur around January 5, 2024. Simultaneously, the network’s hashrate reached new heights, hitting an all-time high on December 24, 2023.

Data from Luxor’s hashrateindex.com reveals that the seven-day simple moving average (SMA) of BTC’s hashrate reached 538 exahash per second (EH/s). This milestone followed a historic peak of 527 EH/s on December 20. As of December 24, approximately 50 mining pools contribute SHA256 hashrate to the BTC network, with Foundry USA leading at 32.30%, commanding 173.55 EH/s of the total hashrate. Antpool is a close second, contributing 26.95% or 144.81 EH/s. Together, these two pools dominate, holding 59.25% of Bitcoin’s aggregate hashrate over the preceding three days.

Hashrate hits all-time high amid technological advancements

At this juncture, just over 17,000 blocks remain until the anticipated halving event, expected to occur around the end of March or the beginning of April 2024. This surge in hashrate aligns with a significant expansion in Bitcoin mining operations. In 2023, the top three application-specific integrated circuit (ASIC) manufacturers unveiled their latest next-generation mining rigs. Mining entities aggressively incorporated these new machines, substantially boosting efficiency, particularly in joules per terahash.

The Financial Times reports a notable investment surge, with publicly listed mining companies investing $600 million in new machinery in December and a total of $1.3 billion on ASIC acquisitions throughout the year, according to The Miner Mag. The increase in mining difficulty and hashrate attests to the growing competitiveness and technological advancements in the Bitcoin mining sector. Miners are continually adapting to optimize their operations and maintain profitability in the evolving landscape of cryptocurrency mining.

The substantial investments in cutting-edge mining equipment underscore the industry’s commitment to staying at the forefront of innovation. As the countdown to the halving event progresses and the mining difficulty continues to set new records, the Bitcoin mining community remains at the forefront of technological innovation and strategic investment to navigate the dynamic and competitive environment of cryptocurrency mining.

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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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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