Mining Input Keeps Increasing With Addition Of More Mining Rigs, Mining Difficulty Surges By 9.95%

The mining difficulty of Bitcoin (BTC) is on the rise. This is time first time in several months that a great surge has been registered in the mining difficulty of BTC.

BTC.com, a major crypto platform tracking the activity of Bitcoin has revealed that following the latest adjustment, the mining difficulty has surged.

The latest report shared by BTC.com shows that a 9.95% increase has been recorded in the mining difficulty.

The Cause of Surge

The reason behind the rising mining difficulty is the installation of more mining rigs for the purpose of mining Bitcoin.

With the start of 2023, the value of Bitcoin has continued surging. The demand for the asset has kept on increasing at a significant rate.

While the demand for Bitcoin is generally moving in the upward direction, mining for the asset is also becoming trendy. The miners have sped up their efforts of adding as many mining machines as possible for Bitcoin.

The New Year has turned out fortunate so far for the Bitcoin mining sector. It is not just the trading price of Bitcoin that has pumped in 2023 but the energy costs have also moved downwards.

These two positive factors have helped the Bitcoin mining sector, increasing its profitability. It is a huge relief for the Bitcoin mining sector that had been struggling for a while and has managed to put up.

Understanding Mining Difficulty

The term “mining difficulty” refers to the computational process that goes behind solving equations referred to as blocks. With the growing demand for Bitcoin, mining firms have started increasing their mining power.

With more competition entering the Bitcoin market, the mining difficulty is getting pushed higher. The adjustment of mining takes place whenever 2,016 blocks are utilized in the case of Bitcoin mining.

Usually, it takes almost 2 weeks for 2,106 blocks to be filled with data and that is equal to the adjustment time for mining. It simply means that the hashrate of the blockchain gets in sync.

Global Hashrate of Bitcoin

Just recently, the global hashrate for Bitcoin was pushed up tremendously. However, the push was temporary but it was enough to elevate the confidence of the entire Bitcoin mining community.

It has given them more of a reason to continue with their mining operations and acquire more mining equipment to increase their mining power.

The report shared by BTC.com shows that the hashrate for Bitcoin went over 320 EH/s in the ongoing week. Another Bitcoin mining data collection firm has shared similar data pertaining to the mining difficulty.

More Machines are Being Added

Since the beginning of the year, the Bitcoin mining communities have doubled down on their mining investments.

They have started to acquire and install more mining machines to increase their mining power. In an attempt to gain the lead, the mining firms have ended up increasing the global mining difficulty for Bitcoin.

Over time, more mining machines with the latest technology and high efficiency have entered the mining industry. Most importantly, the mining industry is now bringing in mining equipment that is electricity efficient.

This way, the mining firms are trying to reduce their mining costs, while increasing their profitability.

Competition is growing

It is true that the hashrate increment is a positive thing for Bitcoin mining but it does not mean that it is positive for the miners.

On one hand, the surge in the mining hashrate suggests that the adoption of mining is tremendous. On the other hand, it suggests that the difficulty is rising, making it extremely difficult to mine BTC and take profits.

As the mining power keeps on increasing, the economic factors supporting the mining sector may lose their significance.

This is because, with high hashrate and mining difficulty, the mining costs tend to increase tremendously. However, as the price of Bitcoin keeps on rising, the difficulty and hashrate would become proportional to the miners’ profits.