Since Bitcoin’s inception, network difficulty has grown from 1 to as much as 48.71 trillion hashes that a miner would theoretically need to generate to find the winning one. This means it is 48.71 trillion times harder to mine a Bitcoin block today than when mining first began in 2009 — a compound increase of 20.64% per month.
At the time of this writing, Bitcoin’s difficulty is at an all-time high, which means that miners — on a BTC basis — are making less in rewards per unit of hash rate than ever before. Next to bitcoin’s price, Bitcoin’s difficulty is a primary factor that influences hash price (mining revenue per unit of hash rate), so miners are interested in projecting Bitcoin’s hash rate growth and difficulty trends for business planning.
To this end, miners and Bitcoiners devised the constant-block-time method for estimating upcoming adjustments, but this method typically over or under estimates difficulty changes at the beginning of each difficulty epoch.
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