Accent bitcoin now requires more computing power than ever before, with mining difficulties reaching a new high of 17.35 trillion, an increase of 9.89% from the previous record published on 1 July.
The new difficulty of mining bitcoin (a metric that describes how challenging it is to compete for rewards on cryptocurrency on the bitcoin blockchain) is a reflection of the increase in computing power devoted to mining bitcoin in recent weeks.
Changes automatically after each 2016-processed block – which occurs approximately every two weeks – the difficulties with mining in bitcoin vary in line with the level of competition in the network. If competition among miners is high over a two-week period, bitcoin mining will become more complex for the next 201
The new record was reached two months after the third bitcoin halving took place, which reduced the reward for successfully validating a new block from 12.5 to 6.25 bitcoin – or from about $ 115,000 to $ 57,500 at today’s exchange rate.
By halving revenues from mining operations, the landmark event was expected to remove smaller miners, judging that they could not bear the new operating costs. However, the new record-breaking difficulty suggests investments in advanced mining equipment have only increased since the halving event.
Bitcoin is the world’s first cryptocurrency and the largest today by market capitalization, followed by Ethereum and XRP. The number of bitcoin currently stands at 18 million, with the cap (whose task is to simulate scarcity) expected to be reached sometime in the first half of the next century.
When cryptocurrency was in its infancy, mining bitcoin was relatively easy, so that a person with a powerful computer could successfully make a profit. In other words, the value of the cryptocurrency reward was greater than the cost of electricity spent (and any other overheads).
Today, bitcoin mining problems have pushed individual miners out of the market (despite the high value of a single coin) and the scene is dominated by mining syndicates, which see participants gather computing resources in return for some of the group’s cryptocurrency revenue.
These bitcoin mining consortia have been known to take extensive measures to improve profit margins, including establishing tailor-made agreements with power suppliers that guarantee cheaper energy in exchange for commitments over a predefined period.
Although it is almost impossible for an individual user to make a profit mining bitcoin today, mining syndicates are an alternative route for dedicated enthusiasts.
However, it is important to understand that, due to the variation in mining difficulties and fluctuations in bitcoin value, participating in a mining operation is a speculative endeavor and does not guarantee an income.