Record-High Difficulty Metric

On November 12, 2023, Bitcoin’s journey marked a significant milestone as its difficulty metric soared by 3.55%, reaching an unprecedented 64.68 trillion at block height 816,480. This increase, the fifth consecutive since September 19, reflects a more challenging mining landscape. The difficulty metric’s upward trajectory began with a notable 5.48% rise on September 19, indicating a shift in mining dynamics and setting the stage for subsequent increases.

The Miners’ Challenge

The intricate relationship between miners and Bitcoin’s algorithmic complexities is highlighted by these adjustments. Each rise in difficulty, from a modest 0.35% to a substantial 6.47%, tells a story of an increasingly competitive and computationally demanding mining environment. This culminated in the latest surge, pushing the difficulty level past 64 trillion, posing a formidable challenge for miners who now need immense computational power to earn Bitcoin rewards.

Hashrate and Mining Dynamics

Central to Bitcoin’s mining prowess is its hashrate, a measure of the total computational power used to secure the network. Over the past three months, Bitcoin has maintained an average hashrate of 423.1 EH/s, with the latest figures showing about 461 EH/s. This dynamic computational landscape is supported by 46 mining pools, with Antpool and Foundry USA leading the pack, thereby underscoring the decentralized nature of Bitcoin mining.

The Road to Halving and Profitability Trends

As the Bitcoin community anticipates the next halving event on April 20, 2024, miners face a changing environment. The profitability of mining, influenced by Bitcoin’s value and transaction fees, saw a rise in October. Notably, the average transaction fee spiked to $15 on November 9, 2023, showcasing an additional revenue source for miners. The expected difficulty adjustment on November 25 adds another layer to the mining equation.

Conclusion: Navigating the Evolving Bitcoin Landscape

Bitcoin mining is at a crossroads, shaped by increasing difficulty, fluctuating hashrate, and market dynamics. Miners are adapting to these changes, navigating a path through computational challenges and the pursuit of block rewards. This evolving narrative underlines the resilience and adaptability of the Bitcoin network and its participants, painting a vivid picture of a digital currency in constant evolution.

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SOURCE: Bitcoin difficulty metric surges to reach a new peak – Cryptopolitan