Bitcoin mining difficulty has risen by 1.7%, reaching a record high, as per BTC.com. In the first two weeks of July, the difficulty rose by 8.9%, continuing the upward trend of the past few months. The mining difficulty metric represents the computational effort required to solve the equations that reward miners with new bitcoins. The rise in difficulty coincides with a jump in the overall hashrate, which represents the total mining power of the bitcoin network. On July 8th, the hashrate hit 125 exahashes per second, representing a 36% increase since the beginning of the year, and is currently sitting around 109 exahashes per second.
The increase in difficulty means that miners will use more computational power to solve equations to earn rewards, but will also earn more bitcoin per block when successful. The rising hashrate shows that miners are bullish on the future of bitcoin and the potential rewards for mining it. It also represents increased competition to mine bitcoin, as more miners enter the market.
The rise in mining difficulty and hashrate coincides with a period of increased adoption and interest in bitcoin. Major companies such as Square and Tesla have recently invested heavily in bitcoin, and El Salvador has become the first country to make it legal tender. Additionally, the upcoming Bitcoin halving event scheduled for 2024 is also driving interest in mining, as the reward for mining new bitcoin will be cut in half.
While the rise in difficulty and hashrate are positive indicators for the future of bitcoin, they also highlight the environmental concerns related to mining. As more computational power is required, more energy is consumed, leading to concerns around the carbon footprint of bitcoin mining. However, efforts are being made to address this, with companies exploring renewable energy sources, and some governments incentivizing green mining practices.
Overall, the rise in difficulty and hashrate show that the mining industry is robust and growing, despite concerns around energy consumption. As the adoption and interest in bitcoin grows, it is likely that the mining sector will continue to expand, providing opportunities for new miners and increased rewards for existing ones.
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