As BTC halving is expected to happen next week, Bitcoin network’s mining difficulty has reached close to its all-time high of 16.55 trillion. Bitcoin’s mining difficulty adjusts itself every two weeks or every 2016 blocks depending on the competition in each adjustment cycle.
We are just seven days from one of the most-awaited events of 2020, the next Bitcoin halving. Next week, the world’s largest cryptocurrency will undergo halving cutting the mining rewards to half. As scheduled, Bitcoin’s mining rewards will drop from 12.5 BTC currently to 6.25 BTC post halving. Besides, it will also reduce the daily mined BTC from 1800 to 900 Bitcoins.
However, we are also seeing some big action on the Bitcoin blockchain before the halving takes place. The Bitcoin halving difficulty has reached close to its all-time high in the final adjustment before halving. Also, the adjusted mining difficulty reached 16.10 trillion (T) on Tuesday. Mining difficulty basically represents how hard it becomes to compete for the block rewards.
New mining difficulty (+0.92%), final adjustment before next week’s halving
— Unfolded (@cryptounfolded) May 5, 2020
Tuesday’s adjustment was the second time that the mining difficulty had ever crossed 16T. Earlier, the Bitcoin network attained its all-time mining difficulty of 16.55 trillion in March 2020. Since the daily mined Bitcoin will reduce to half, the computational power connected to the Bitcoin will also drop.
Bitcoin’s mining difficulty adjusts itself every two weeks or every 2016 blocks depending on the competition in each adjustment cycle. Besides, the difficulty adjustments also depend on the number of people participating. More participation requires higher computational power and the difficulty goes up.
As per the mining pool data aggregator Poolin, the average hashing power linked to the Bitcoin network over the last seven days has jumped significantly to over 119 exahashes per second (EH/s). Also, the average computing power in the last two weeks is at 115 EH/s.
Bitcoin Consolidates Around $9000 while BTC Mining Difficulty is Growing
The Bitcoin halving event has yet again sparked excitement among Bitcoin investors. Last week, the Bitcoin price jumped over 12% and since then Bitcoin has been consolidating at around $9000 levels.
Earlier this year, the Bitcoin price surged nearly 40% in its massive price rally by mid-February. However, along with the global markets, the crypto markets also tanked massively in March. This market correction wiped-out all the early gains pushing Bitcoin below $6000 levels. At this time, the Bitcoin network’s hashing power and difficulty also crashed a massive 16%.
However, Bitcoin has quickly recovered since then and now trades 30% positive year-to-date. At press time, Bitcoin is trading at $9003 with a market cap of $165 billion.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.