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November 29, 2022
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Bitcoin mining difficulty increases for the eighth time since the ban on cryptocurrencies in China

Bitcoin appears to have completely bypassed China’s ban on cryptocurrencies as the network’s mining difficulty registers its eighth consecutive increase.

It’s getting even harder to mine Bitcoin, as the network’s difficulty has increased once again on Sunday, this time by up to 7.85% since the last adjustment. According to data from BTC.com, this is the eighth consecutive increase since July, and the second biggest since the end of August, with the difficulty of surpassing 21.66 trillion.

Bitcoin mining is a process of creating new currencies by solving complex mathematical puzzles with the help of specialized software installed on users’ computers. Miners compete with each other to verify transactions and add them to the blockchain, earning rewards for their efforts and resources spent. Bitcoin mining difficulty, in turn, is a measure of how difficult it is to mine new coins – the higher the difficulty, the more additional computing power it takes to find new blocks.

The difficulty reached an all-time high of 25.05 trillion in May 2021, before dropping to a year low of 13.67 trillion in mid-July when China – historically one of the most important countries in the world for Bitcoin and other digital currencies – introduced a ban on mining cryptocurrencies.

Similarly, Bitcoin’s hash rate – a measure that tracks the number of calculations made per second – has also increased in recent months. According to data from Blockchain.com, the network’s hash rate surpassed 159 Th/s on Sunday, reaching its highest level since May this year.

In recent months, the hash rate has also correlated very well with the price of Bitcoin, which last month hit a new record of $67,276, for CoinGecko.

Data from bybt.com shows that last October was an extremely good month for Bitcoin investors, bringing them up to 39.93% in profits – the second best result since October 2017, when the leading cryptocurrency soared almost 48%.

With Bitcoin’s latest high, difficulty and hash rate on the rise, it’s probably safe to suggest that the network is fully recovering from the aftermath of China’s cryptocurrency ban.

In addition, China’s absence from the world Bitcoin mining map has also had a positive impact on mining decentralization. The United States achieved pole position with a market share of more than 35%, followed by Russia and Kazakhstan with 18% and 11%, respectively.

Source: Decrypt

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