Bitcoin is one of the many blockchain protocols relying on the Proof-of-Work consensus algorithm. To secure the network, miners must perform calculations to create blocks. Following a new BTC price all-time high, there are new highs for overall hashrate and mining difficulty.
Bitcoin Mining Difficulty and Hashrate Spike
There is an apparent growth curve when looking at the mining statistics for the Bitcoin network. Not surprising, as this network is designed to make mining difficult while reducing rewards through a halving process every four years. While that may seem unappealing, the value of Bitcoin tends to at least double during those four-year periods, if not gain even more value.
For the current mining difficulty, the highest level in history has been reached. Considering how the Bitcoin mining difficulty can adjust upward or downward depending on the hashrate, seeing new all-time highs being hit is a bullish indicator. Over the years, there have been a few dips along the way, but the momentum is ramping up again.
Numbers-wise, the current Bitcoin mining network difficulty is nearly 20% higher compared to early January of this year. Such a substantial increase can only happen if the network hashrate moves up accordingly. If the difficulty keeps going up at this rate, the next all-time high difficulty can be twice the difficulty recorded in June of 2020. An intriguing development for a network most people consider “wasteful”.
Speaking of the hashrate, the current situation looks healthy in this department. With over 160 exohash pointed at the network, Bitcoin appears to be in more than capable hands to keep trucking along. This number also represents a strong increase from the dip to 113 Exohash in November of 2020. One can interpret this as another bullish sign, although that is a matter of debate.
Bullish Price Chart Offers Hope
For those who merely care about the value per BTC, there is no reason for concern either. Bitcoin’s price chart to date shows a clear uptrend, yet one that was disrupted a few times along the way. The current bullish trend is far more outspoken and also has more “punch” to it, judging by the current momentum.
Reaching the price point of $50,000 is the next point on the agenda. In the cryptocurrency industry, there are no easy opportunities to make an impact and sustain the upward momentum. Bitcoin currently depicts ample market potential, especially when the mining difficulty and hashrate show such strong growth curves. This current situation seems to be very different from the 2017 period.
The big question is how long all of these miners will continue to support the network. With rising Bitcoin prices, they earn more money. Additionally, Satoshi Nakamoto designed the network to support Proof-of-Work rewards until the year 2140. Assuming the price remains near the current level until the next halving, new all-time highs for hashrate and mining difficulty remain within reach.