On-chain data shows the Bitcoin mining difficulty has seen a rise of over 7% in the latest adjustment. Here’s what it could mean for the asset.
Bitcoin Mining Difficulty Has Registered A Surge Of More Than 7%
On the Bitcoin blockchain, there is an in-built special feature called the “mining difficulty.” Basically, why this feature exists is to ensure that the block rewards on the network continue to be given out near a constant rate.
The block rewards refer to the BTC that miners receive when they successfully add blocks to the network. These rewards are the only way in existence to mint more of the cryptocurrency. As such, the rate at which miners churn out blocks is equal to the production rate of the asset.
When miners add more computing power to the network (thus increasing the total “hash rate”), they naturally become faster at the process of mining and, hence, produce blocks at a faster rate.
This is problematic for the asset, though, since if miners continue to increas
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