Despite the fact that the price of Bitcoin (BTC), the most valuable cryptocurrency by market cap, is somewhat down, the rivalry between crypto miners has been increasing since the start of 2022 and has now hit a new all-time high.
As per figures released by the crypto market analytics platform CryptoRank, the Bitcoin (BTC) mining difficulty on Friday was 27.53 trillion hashes, up 13.6% from 13.6 trillion hashes at the start of 2022.
📈Despite #Bitcoin’s price falling, its mining difficulty rises to new ATH
Since the beginning of the year, mining difficulty has grown by 13.6%.
— CryptoRank Platform (@CryptoRank_io) March 18, 2022
Difficulty increases as more miners set up their crypto mining operations, and as the authentication of transactions take more time and energy to be completed, such as allocating hashes to blocks.
Cryptocurrencies employ this difficulty to maintain the average time among blocks consistent while the network’s hash power fluctuates.
However, the hash rate of Bitcoin (BTC) (the network’s computing capacity) has been steadily rising. According to Ycharts data, it was at 217.52 million TH/s as of the time of writing, up 4.81% from 207.53 million TH/s on January 1 of this year.
When these two indicators are combined, it becomes clear that Bitcoin (BTC) mining is becoming more common, and that network integrity is improving, as a big number of miners validating transactions signals a greater standard of the security of blockchain.
The considerable hike of individuals mining Bitcoin (BTC) could be happening for a number of reasons, such as the rising sustainability of mining the biggest cryptocurrency, as well as cryptocurrencies holding strong against geopolitical instabilities and inflation among other financial crises.
The expenses of operating a mining business increase as the difficulty of mining increases. Several miners are experimenting with new techniques to balance costs and lessen environmental effects. Another of them is an Arizona cryptocurrency enthusiast who has constructed a 6kW solar-powered Bitcoin (BTC) mining setup.
Given the considerable appeal of mining, the price of Bitcoin (BTC) has dropped 13.6% from the beginning of 2021, from $46,730 on January 1, to $40,360 at the time of writing.
The biggest cryptocurrency is currently changing hands at $40,670.22.