Bitcoin mining difficulty reached its highest level since June
The level of difficulty in extracting bitcoins has recently risen to 19.89 billion at block 703.584, thus reaching the most difficult level since the previous adjustment on 14 June. The latest hike follows five hikes after four consecutive drops since May, when China stepped up its crackdown on the sector.
Bitcoin mining difficulty is a measure of how hard a miner would have to work to verify transactions on the block or “mine” bitcoin. The difficulty level undergoes an adjustment every 2,016 blocks, which usually takes about two weeks.
Ph. Marco Verch
These mining difficulty adjustments are highly correlated with changes in mining hashrate, which refers to the level of computing power required to mine. The harder it is to mine bitcoins, the less profitable it is for miners. As the hashrate increases, the mining difficulty typically follows. That said, the projected increase in mining difficulty could be largely due to a hashrate recovery.
The total bitcoin hashrate has been steadily recovering since July 3, as suggested by data from Blockchain.com. Total hashrate had been in a steep swoop since mid-May, plummeting from 180.67 million terahash per second – an all-time high – to 84.79 million on July 3, the lowest since September 2019, according to the data.