Bitcoin Mining Difficulty Hit New All-Time High, Bitcoin Price Jumps 5%
Bitcoin mining difficulty continues to rise on bitcoin network by hitting a new all-time high with a new difficulty 10,183,488,432,890 (+1.98%) as the 294th Bitcoin mining period has started with block 590,688 reported on 18 August 2019.
The hash rate of the bitcoin network is increasing continuously that results in the settlement of high mining difficulty in order to adjust the block generation time to 10 minutes.
What is Bitcoin Difficulty?
New bitcoins are generated through mining where miners get these bitcoins as a reward for which they have to put high computational power into the bitcoin network and this computational power known as hash power that solves the difficult maths problem to find the solution in order to generate new block to the blockchain.
So the bitcoin mining algorithm had to ensure that the block generation time must be 10 minutes and hence when hash power on the bitcoin network increased then the difficulty of the problem to generate a new block is also increased to make block generation time remain 10 minutes and vice versa.
This difficulty value updates every 2 weeks to ensure that it takes 10 minutes (on average) to add a new block to the blockchain.
Increment of Bitcoin’s difficulty is the positive sign giving the confidence to the investors as the Bitcoin network is now much more secure than at any point in its history. from the starting of the year 2019, a lot of development has been made in the Bitcoin network that makes it more faster and economical.
The Mining difficulty of bitcoin will continue to increase as Bitcoin block halving is coming in May 2020. Block Halving is a process that reduces bitcoin mining reward per block to the half of the previous value (this time from 12.5 BTC reward per block to 6.25 BTC).
