The latest report says that the difficulty of mining Bitcoin has reached a record high of 52.35 trillion, an increase of 2.18% due to intensifying mining competition. The updated reading was recorded on Wednesday at the block height of 794,304.
According to the report published on the Bitcoin World platform, the rising demand for mining due to Bitcoin’s developing popularity is causing increased rivalry among miners. Investigation into the activities reveals that to maintain a 10-minute average block production time, the mining difficulty is changed every 2016 block or roughly every two weeks. As a result, inflation is avoided, and fresh Bitcoins are generated steadily.
On Wednesday, the hash rate of Bitcoin, which is a gauge of the network’s computing capacity, surged to roughly 392.6 exahashes per second. Compared to the 375.4 exahashes noted at the prior adjustment on June 1, this reflects an increase. The increasing hash rate is another sign of the intensifying rivalry among miners as they fight for a piece of the Bitcoin payouts.
According to a publication by CoinMarketCap, Bitcoin still enjoys a phenomenal year-to-date rise of around 51%. Despite a 3.63% fall in the last 24 hours, closing at $25,045 by 11:10 a.m. in Hong Kong. The demand from institutional investors and businesses like Tesla, which invested $1.5 billion in Bitcoin earlier this year, has increased, fueling this expansion.
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It was also gathered that this is the second time the mining difficulty rate for Bitcoin has risen, making it the second time in a row. A sign of the intensifying competitiveness among miners was the prior increase of 3.4% on June 1. The consistent rise in demand for Bitcoin mining is reflected in the latest increase of 2.18%.
The chief of Digital Power, Andrew Webber, who commented on the development, said that the difficulty experienced so far is a result of increasing or decreasing hash rates. The movement, Webber explained, is propelled by the general profitability of creating and managing BTC data centers.
The Situation Escalates, Affects The Entire Cryptocurrency Market
The latest development in the bitcoin mining sector also affected the market performance of other digital assets. A recent report reveals that the actual volume of DeFi witnessed a 7.34% increase, sitting at $3.07 billion in the last 24 hours after the report was made public.
The same applies to stablecoins reported to have increased by 100.04%, hitting $41.9 billion in the last 24 hours. The BTC, on its part, recorded a 47.57% market dominance, a development that has been widely linked to the latest scarcity – but also experienced a decrease of 0.01% in the last 24 hours.
Expert analysis by BitcoinWorld said that smaller miners who may find it difficult to compete with larger mining operations, need help due to the growing competition among miners, predicting that the mining sector might become more consolidated, with bigger miners controlling the market.
As of the time of this report, Foundry: a United States-based mining company, tops the list of companies with the highest mining pool, with a 131.40 EH/s hash rate in the last three days, representing around 34.20%. Antpool came second on the list with approximately 90.34 EH/s of hash rate, representing 23.52% share. Others that made it to the list include Viabtc, F2pool, and Binance Pool.