Bitcoin Mining Industry is Booming as Difficulty Soars 14% to New High

Published on by Cointele | Published on

Mining difficulty on the Bitcoin network has taken its steepest upturn in almost a year, data from major Chinese mining pool BTC.com reveals.

On July 9, difficulty surged by over 14% to hit 9.06 trillion, at an average hash rate of 64.85 EH/s - a new all-time-high in the network's history.

The last time the network posted such a sharp increase in block producing difficulty was back in late July 2018, when it soared almost 15% over a 2,016 block interval.

At that time average hash rate was at 42.59 EH/s and absolute difficulty was at a significantly lower 5.95 T. As previously reported, Bitcoin's hashing difficulty algorithm is designed to adjust every 2,016 blocks - roughly two weeks - to maintain a consistent ~10-minute block verification time.

Typically, when the network sees a low level of participating mining power, difficulty will tumble - while in periods of intense network participation, it rises, working as a counterbalancing mechanism.

Amid the bull market, BTC.com's data indicates that the next difficulty increase will see this uptrend intensifying even further - within 11 days, mining difficulty is expected to surge a further 10% to hit 9.9 T. Block producing time for the recent 2,106 block period was at just 8 minutes 46 seconds - over 10% short of the desired 10 minutes.

It is worth noting that absolute difficulty was at just 144.12 G, with an average hash rate of 1.03 EH/s.

Go back still further to fall 2010, and the budding network was subject to hikes of almost 56% - but with an absolute difficulty of 2,149 - 2.15 K and a 15.37 GH/s average hash rate.

During crypto winter, Cointelegraph reported that the Bitcoin network had reported its second-largest difficulty drop in history, with a -15% adjustment in early December 2018.

In June of this year - as Bitcoin's 2019 bull run gathered pace - mining difficulty hit a then all-time-high of 7.86 T, as reported at the time.

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