Lately, it has gotten harder to mine the world’s most valuable crypto. Data from Glassnode, a crypto analytic firm, showed that mining difficulty increased by 3.6% and is at an all-time high.
#Bitcoin mining difficulty increased by 3.6% and is at an all-time high.
— glassnode (@glassnode) August 24, 2020
It recently just hit another all-time high, after surging more than predicted during Monday’s difficulty adjustment. The network’s hash rate however remains below its all-time high recorded last month.
Quick fact: Bitcoin’s mining difficulty is best defined as the measure of how difficult it is to work for mining rewards or earning BTC.
Bitcoin mining involves the act of solving tasks that come in the form of algorithms in affirming a transaction and fixing it within a block on the blockchain.
BTC miners who successfully mine a block are paid or rewarded in BTC. BTC miners also help in facilitating the security mechanism of the blockchain network by confirming transaction information or data to the Bitcoin ledger.
This confirming process involves solving complex mathematical problems and a lot of computing power. BTC Miners are successfully rewarded with BTC for their contribution to the ledger based on their proof-of-work.
Meanwhile, BTC has performed well over the past few weeks, maintaining its position above $10k after testing this price level several times earlier in the year. It hasn’t dropped below $11k since the price started climbing in late July.
Despite these gains, it has continued to struggle to surpass the new psychological barrier of $12k. However, ongoing bullish sentiment, as evidenced by on-chain data, suggests that many investors would continue to support a price above this level.