Bitcoin Mining difficulty has risen to a new all-time high again. The difficulty has increased by about 13.5%.
Sufficient profit margins for new machines
Where the prices of the crypto market have been under pressure for a long time, the difficulty of Bitcoin does not suffer from this. Despite some lows, it continues to grow steadily.
The new tweak suggests that miners will find enough profit margins to power up new mining machines. It is worth noting that since the Ethereum merge, many miners have disappeared that may now be (partially) deployed on the Bitcoin network. It is positive for the security of the Bitcoin network.
How often does the difficulty level change?
Such a difficulty adjustment takes place every 2 weeks or so, every 2,016 blocks. The average block time over the most recent 2016 blocks was approximately 9 minutes.
However, according to the Bitcoin whitepaper, an increase in difficulty is normal when blocks are generated too quickly. The following is stated about this:
To compensate for the increasing hardware speed and fluctuating interest in rotating nodes over time, the proof-of-work difficulty is determined by a moving average targeting an average number of blocks per hour.
The difficulty of Dogecoin also increases
An increasing difficulty of a crypto network coupled with falling prices could also indicate a poor manager of the finances. Miners who assumed we would be in an up-only market and bought machines at high prices will definitely feel the drop in value.
A few Bitcoin miners have begun to look for ways to lower their costs, such as using waste heat to maintain constant temperatures in workspaces. This could result in more and more mining machines being turned on again, which has a positive effect on their security and difficulty.
Finally, it is worth noting that Dogecoin, the 2nd largest Proof-of-Work network in the last 24 hours has also experienced an increase in difficulty. This has increased by more than 17.8% in this period.