The Market Fell and the Difficulty of Bitcoin Mining Hit a Record High

New data shows that with the price of bitcoin assets hitting a new low in the past year, the mining difficulty of bitcoin has also reached an all-time high.

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BTC.com data show that the difficulty of mining, that is, the problem of measuring the hash value of trading blocks found on the bitcoin blockchain, has just reached a record high of 31.25 trillion hash value. This difficulty occurred in block 735840.

Bitcoin has recently shown a close relationship with technology stocks, briefly falling to $29000 on Monday and then rebounding to $31134.79.

According to Bloomberg, since 2014, every downward trend in bitcoin price has ended with reaching the 200 day moving average price. At this stage, it may hit the $20000 mark. The daily revenue from guessing the correct block hash value and transaction costs has decreased from $32.28 million on Tuesday to $30.47 million today. If bitcoin approaches the $20000 mark, it may decline further.

Coupled with the soaring difficulty of mining, many miners may find themselves in unprofitable space and choose to close their stores, leaving tens of thousands of dollars worth of equipment unused until the difficulty decreases.

Bitcoin Mining Difficulty is Calculated Every Two Weeks

The mining difficulty is calculated approximately every 2016 blocks, or approximately every two weeks. The number of mining difficulty represents the number of times you need to guess the hash value of a block before finding the correct answer.

Recently, the difficulty has increased by 4.89%, and the average block time is 9 minutes and 32 seconds, which requires the computing power of 223.7 hash values per second.

If there is no difficult dynamic adjustment, as more and more miners join the network with more and more powerful computers, the time to solve a block may be greatly reduced, resulting in more coins being rewarded to miners in a short time and bitcoin devaluation.

In the early stages of bitcoin mining, block time of more than 15 minutes is not uncommon. September 2009, BTC Com recorded the highest block time of a difficult era, 29 minutes and 40 seconds.