Bitcoin mining difficulty has reached a record high peak on Saturday, Jan 9th. Miners are selling less BTC as it becomes hard to hash data and produce new coins.
The buzz around BTC has increased miners’ interest in mining new bitcoin. There is a huge number of individuals and firms trying to confirm a transaction on Blockchain than ever before. Bitcoin mining requires a high amount of computing power. Crypto industry is often called the ‘power-hungry‘ sector for this very reason.
On January 9th, the difficulty reached the record high peak of 20.6 Trillion.
This record-breaking event suggests that we will see a diminished supply of bitcoin in the coming days.
Difficulty rate is a measure of resources required for mining a BTC. It surges or plunges depending on the amount of computing power necessary for the hash process. In addition, when more individuals opt for mining then the process becomes increasingly hard. These two factors have led to the highest difficult ever faced by miners.
Bitcoin Breaking Records:
Bitcoin is breaking records since the start of 2021. The bullish rally has been a joyful ride for crypto traders with bitcoin hitting the all-time high value of $42,000. Bitcoin trading volume also reached a record peak last week. The incentive of selling BTC at such high price motivated the firms and individuals to speed up the mining endeavours. Thus, the unprecedented record of bitcoin mining difficult was set on Saturday.
At the time of this writing, bitcoin is back at $35K. Is the bull rally over? can’t say that. However, the miners are still into producing new coins.
There are going to be 21 million bitcoin ever. With more BTC coming into the market the total number of remaining ones is diminishing. Besides, after the forking in 2020, the reward for bitcoin has halved. Now a miner gets 6.25 BTC upon solving a complex cryptographic problem. Previously the incentive was double this figure. Hence, the bitcoin mining arena has strong competition. Nevertheless, bitcoin miners are continuing the bullish rally by bringing more effort to the table.