- Bitcoin, the world’s most popular and valuable currency had recently broken the $8k mark in terms of value a few days back.
- Cryptocurrency market research website, Coin Metrics reported that the bitcoin mining difficulty has been increasing by 8% consistently.
- The reason for the all-time high mining complexity is a byproduct of the ongoing crypto conflict between the U.S. and China.
Bitcoin, the world’s most popular and valuable currency had recently broken the $8k mark in terms of value a few days back. As bitcoin gets more traction and reaches a broader audience, the mining difficulty and hash rate of the coin has also been increasing steadily over time.
It has been on a more profound upper curve in the past couple of days, as bitcoin mining difficulty now expected to reach 15 TH/s within four days.
Cryptocurrency market research website, Coin Metrics reported that the bitcoin mining difficulty has been increasing by 8% consistently. The research group went on to further state that the problem was estimated to reach 15 terahashes per second within half a week.
This will mark an all-time high for mining complexity and is speculated by Coin Metrics to be a consequence of the highest hash rate bitcoin has observed since the beginning of 2020. The hash rate and the mining complexity determine the health of the blockchain network and the efficiency of the miners.
The graph shows bitcoin maintaining an average of 10 terahashes per second since the beginning of the year and the mining difficulty increasing from about 5 TH/s to 8.5 TH/s on the 2 January 2020.
It alleged by some cryptocurrency community on Twitter that the increased hash rate can be Chinese miners keeping the hash rates at all-time highs to crash the European and American bitcoin markets.
If the prediction by Coin Metrics comes to fruition, EU and U.S. based miners will surely be at a loss and will have trouble to keep pace with their Chinese brethren.
It is also to note as pointed out by twitter cryptocurrency analyst, Plan B, that bitcoin mining difficulty has traditionally led to higher prices for the former in the past. There have been various mining complexity variations in the past, and most of the time as the difficulty increases, it usually followed by a boom in bitcoin prices.
Bitcoin mining is the process of using solving complicated cryptographic equations and adding more transactions to the blockchain. Every two weeks, the complexity level of mining changes to ensure blocks are added to the blockchain network even if the number of miners increases or decreases.