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On-chain data shows that the difficulty of the Bitcoin network will increase in the next adjustment and is estimated to reach a new all-time high (ATH).
Bitcoin difficulty will increase again in upcoming adjustments
“Difficulty” refers to a function that exists on the Bitcoin blockchain, which determines the current task of miners to discover mining blocks on the network.
This feature exists to ensure one thing: the rate at which the miner adds blocks to the chain remains constant. Whenever miners resolve a block, they receive block subsidies as compensation, so the difficulty of locking these chain validators also makes them receive this reward at a consistent rate.
The reason why Satoshi programes difficulty to blockchain is due to the nature of the block subsidy itself. The coin miners will get fresh minting from it, which means that the total supply of cryptocurrencies will rise every time a barrier is solved.
If miners can speed themselves up indefinitely by simply adding more computing power, the supply of assets will be flooded with tokens. However, due to the difficulty, this out-of-control inflation is impossible.
That is, miners can deviate from their usual speed in a short time, because the difficulties do not change immediately. More specifically, there is a window of about two weeks between each network adjustment.
The adjustment is completely automatic, as it is difficult to completely change so that the miner restores the miner to a standard speed of one block every 10 minutes.
The next tweak will be made at midnight at UTC later today. Here are the details about Coinwarz related to this event.
Looks like the block time on the network has been lower than needed | Source: CoinWarz
It can be seen that over the past few weeks, Bitcoin miners have averaged 9.58 minutes per block, indicating that they are faster than the network wants.
The difficulty of BTC blockchain will increase now, and it is currently estimated to be around 4.35%.
The trend in the BTC mining Difficulty during the last few months | Source: CoinWarz
The final adjustment also led to an increase in the indicator, although it was especially small. This new jump will bring the indicator to about 126.95 Terahashes, a new record.
ATH’s ATH is reaching due to the measurement of total computing power used by miners, as the measurement of total computing power used by miners has also shifted to new heights because of the data from BlockChain.com display.
The BTC Hashrate has been following an upward trajectory in recent days | Source: Blockchain.com
BTC price
At the time of writing, Bitcoin’s float is about $105,800, down more than 2% over the past seven days.
The price of the coin appears to have seen bearish action during the last few days | Source: BTCUSDT on TradingView
Featured images from dall-e, blockchain.com, coinwarz.com, charts from tradingview.com
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