Bitcoin news

Increase the mining difficulty for Bitcoin

For the first time in its history, the difficulty in the Bitcoin mining sector has increased.

Bitcoin mining - Increase the mining difficulty for Bitcoin

For the first time in history the difficulty for the mining di Bitcoin is above 20T. This is a parameter that regulates the difficulty necessary to be able to work in the field of mining and therefore in carrying out and confirming the blocks, so that on average it is possible to mine a block every 10 minutes.

Due to the rise in the value of Bitcoins over the past two weeks, the profitability of mining is returned to the levels of August 2019, when the small speculative bubble given by the announcement of the launch of the cryptocurrency was acting on the price of Bitcoin Libra from Facebook.

The increase in the level of profitability is three times higher than in October 2020, and has prompted miners to increase the computing power allocated to this activity accordingly. The result was a noticeable increase in hashrate and allowed for the collapse of the blocktime to a period of 8 minutes. 

Until December 26, 2020, blocktime was around 10 minutes, with BTC increasing in value from around $ 25 to 40 thousand dollarsi, there has also been an explosive increase in mining profitability, resulting in an increase in hashrate and a reduction in blocktime to just 8 minutes.

This is why there has been an increase in difficulty. The latest of these increases was tracked on January 9, reaching 20T for the first time. This increase was necessary and serves to increase the blocktime, even if it is not said that it will be possible to bring it back to 10 minutes. But if this happens, the next difficulty update should take place around 23 January, reaching a percentage between 2 and 8%.

In the meantime, however, if the price of Bitcoin should still fall, it is possible that the profitability in the field of mining will return again to the levels of December, consequently leading the miners to a reduction in computing power and consequently to a spontaneous reduction of the time for block resolution. In fact, as described, it is the price that affects profitability and consequently on block time and hashrate.

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Silvia Faenza

Graduated in Political Science and International Relations at the University of Salento, in the 2014. From 2015 he is in charge of content management for online companies and publishing agencies, mainly as a ghostwriter, copywriter and web editor.

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