Bitcoin miners are facing yet another network difficulty increase, marking the fifth since February 24, 2023. On April 20, at block height 786,240, the network’s difficulty rose by 1.72%, bringing it to 48.71 trillion. This represents a 22.62% increase in the last 55 days since block height 778,176. The current difficulty level is an all-time high, indicating an exceptionally high average hash rate required for mining a new block. To stand a chance of mining a BTC block and earning the associated rewards and transaction fees, a miner would need an average hash rate of 48.71 trillion hashes per second.
As of now, the network’s hash rate hovers around 352.99 exahash per second (EH/s). According to coinwarz.com data, the hash rate peaked at 440.80 EH/s on April 18 at block height 786,013. Currently, bitcoin mining pool Foundry USA dominates with 116.49 EH/s or 32.96% of the global hash rate. The top five bitcoin mining pool rankings include Antpool (79.74 EH/s), F2pool (50.82 EH/s), Binance Pool (36.74 EH/s), and Viabtc (28.93 EH/s).
Compared to 2022, miners have had a better year in terms of BTC prices in 2023. However, BTC dipped below the $29K mark on April 20 after nearing $31K six days earlier on April 14. Over the past week, BTC has lost 3.8% in value but still holds a monthly gain of 3%. Lower BTC prices strain bitcoin miners, and the consecutive increases in difficulty don’t help either.
The next anticipated difficulty adjustment for the Bitcoin network is expected around May 4, 2023. Current data indicates that block intervals have slowed beyond the average ten-minute duration, with times ranging from ten minutes and 36 seconds to eleven minutes and 23 seconds per block. Based on block intervals and existing difficulty levels, estimates predict the next adjustment could be a downward change. Currently, over 1,900 blocks remain to be discovered before the next Bitcoin network difficulty adjustment, and more than 53,000 blocks stand between now and the next halving event scheduled for around April 20, 2024.
The continuous rise in Bitcoin’s network difficulty has significant implications for the mining industry. The increasing difficulty means that miners need to invest in more powerful and expensive equipment to keep up with the competition. This results in higher costs for mining, which can lead to smaller profits or even losses for miners. As a result, some miners may drop out of the race, while others may join to keep up with the increasing difficulty.
The mining industry is an essential part of the cryptocurrency market, and its success is directly tied to the success of Bitcoin and other cryptocurrencies. As the network difficulty continues to rise, it will be interesting to see how the mining industry adapts and evolves to keep up with the changing landscape.
In conclusion, Bitcoin’s network difficulty has risen by over 22% in less than two months, reaching an all-time high on April 20. This continuous rise in difficulty has significant implications for the mining industry, as it requires miners to invest in more powerful and expensive equipment to keep up with the competition. As the network difficulty continues to increase, it will be interesting to see how the mining industry adapts and evolves to keep up with the changing landscape.
Disclaimer: This article is for informational purposes only and is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
