Following the network difficulty change six days ago on September 27, Bitcoin’s hashrate surpassed the 295 exahash per second (EH/s) range two times during the first two days of October. Presently the network is coasting along at 229 EH/s and block intervals have been faster than the ten-minute average, which means another upward difficulty adjustment is likely in the cards. With Bitcoin’s mining difficulty looking as though it will reach another all-time high (ATH), the network’s hashrate has increased exponentially from six million hashes per second to the recent two hundred ninety-five quintillion hashes per second.
Bitcoin’s Network Hashrate and Difficulty Continues to Rise
Bitcoin’s computational power is a whole lot stronger than it was 13 years ago. The network’s mining difficulty reached an all-time high just recently on September 13, 2022, at block height 753,984.
The height the mining difficulty reached was approximately 32.05 trillion hashes and it’s a high probability that the network will see an upward adjustment on or around October 11, 2022. Statistics show that the difficulty retarget could be anywhere from 4.22% higher to 10.7%.
Despite the lower bitcoin (BTC) U.S. dollar exchange rate and a difficulty that’s close to the ATH, miners have continued to increase their hashpower. In fact, there is no computational network today, that has exponentially risen at the pace the Bitcoin Network’s hashrate has increased during the last decade.
On January 19, 2009, Bitcoin’s hashrate was approximately six million hashes per second (6,290,000) and using the recent 295 EH/s recording, it equates to two hundred ninety-five quintillion hashes per second (295,000,000,000,000,000,000). Those two data points indicate that the network’s hashrate has grown four quadrillion percent higher in 13 years’ time.
Current block times have been less than the ten-minute average at 9:01 minutes at the time of writing. On October 1, 2022, the block interval was even faster at 7:95 minutes in between blocks. Difficulty adjustments are a lot more common every two weeks than they were in the early days (pre-2010).
It wasn’t until February 2, 2010, or block height 40,320 that the difficulty rose above 1 hash and by September 18, 2017, at block height 485,856 Bitcoin’s network difficulty rose above 1 trillion hashes for the first time.
Just like the hashrate, Bitcoin’s mining difficulty has risen exponentially as well, increasing three quadrillion percent since February 2, 2010, or during the course of the last 4,626 days. At the time of writing, more than 756,888 bitcoin blocks have been mined into existence and 1,831,949.98 BTC remains left to mine.
What do you think about the Bitcoin network’s exponential hashrate growth and the difficulty adjustments in recent times? Let us know what you think about this subject in the comments section below.
Source: Mining Archives – Bitcoin News
Bitcoin’s Mining Difficulty Expected to Drop Significantly, Retarget Could Be 2022’s Largest Reduction
Bitcoin miners could catch a break in a week or so, on or around Dec. 5, 2022, as the next difficulty retarget is expected to see a significantly large reduction. Estimates show the next difficulty retarget could drop anywhere between 6.13% and 10% lower. Presently, the difficulty change looks as though it could be 2022’s […]
Bitcoin miners could catch a break in a week or so, on or around Dec. 5, 2022, as the next difficulty retarget is expected to see a significantly large reduction. Estimates show the next difficulty retarget could drop anywhere between 6.13% and 10% lower. Presently, the difficulty change looks as though it could be 2022’s largest reduction if it surpasses the 5.01% decline recorded on July 21.
Bitcoin’s Next Difficulty Retarget Is Expected to Decrease, Data Suggests a Notable Drop in the Cards
When the last Bitcoin difficulty change occurred on Nov. 20, 2022, at block height 764,064, it increased by a mere 0.51% that day. The increase did, however, propel the network’s difficulty to its lifetime high of 36.95 trillion. Since then, during the past week, the network’s average hashrate has been around 249.1 exahash per second (EH/s).
The average Bitcoin network block time has been slower than usual as well, running between 10.2 minutes to 11.06 minutes on Monday evening (ET). The block intervals have been a lot higher since the difficulty change on Nov. 20, as prior to that day, block times had been on average less than ten minutes since Sept. 29.
The longer block times suggest the 2,016 blocks mined prior to the next retarget will be slower than the average of two weeks. At the time of writing, statistics indicate that the retarget could drop as low as 10% on Dec. 5, and metrics from Btc.com indicate the drop is estimated to be around 6.13%.
Both estimates would outpace the largest difficulty contraction the Bitcoin network has seen all year with the largest decrease so far recorded on July 21, which was approximately -5.01%. Miners are currently dealing with the highest difficulty ever recorded, and bitcoin (BTC) prices are 76% lower than the all-time high ($69K) recorded on Nov. 10, 2021.
Mining insights from braiins.com and macromicro.me show BTC’s cost of production ($18,360) is above the current spot market value ($16,250). Additionally, market intelligence from Glassnode indicates that bitcoin miners are tapping into their treasuries.
The onchain analytics firm Glassnode tweeted about how the bitcoin mining sector and industry is “under immense financial stress,” while announcing a mining report the firm published with Cryptoslate.
“What we find is that [bitcoin] miners are distributing around 135% of mined coins,” Glassnode said. “This means miners are dipping into their 78K [bitcoin] strong treasuries.” During the latter half of the year, publicly-listed mining operations have disclosed that they have been selling BTC to bolster cash reserves and pay down debt.
At the time of writing at 7:30 p.m. (ET), Foundry USA’s three-day hashrate is around 60.66 EH/s, which represents 25.45% of the global hashrate. In three days, the largest mining pool Foundry mined 98 BTC blocks out of 385 discovered by all the miners.
Foundry’s hashrate is followed by Antpool, F2pool, Binance Pool, and Viabtc respectively. Between all five pools over the last three days, the top five mining pools were able to discover 315 blocks out of the 385 total.
What do you think about the chance that the next difficulty retarget could be the largest decrease in 2022? Let us know what you think about this subject in the comments section below.
Source: Mining Archives – Bitcoin News