The data shows that bitcoin mining difficulty will see a large positive adjustment as the hashrate continues its strong growth.
bitcoin 7-day mining hashrate continues to discover new highs
“Mining hashrate” is an indicator that tracks the total amount of computing power that miners currently have connected to the bitcoin blockchain.
When the value of this metric increases, it means that miners are finding the network profitable at the moment, so new ones are joining and/or old ones are expanding their facilities.
On the other hand, the decreasing values suggest that some miners have decided to disconnect from the blockchain, potentially because the cryptocurrency is currently unprofitable to mine.
Now, here is a chart showing the trend in the 7-day average bitcoin mining hashrate over the past year:
<img decoding="async" class="alignnone wp-image-259513 size-full aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/Bitcoin-Hashrate-Explodes-Hard-to-See-Big-Rise.png" alt="bitcoin Hashrate” width=”1387″ height=”586″ srcset=”https://technicalterrence.com/wp-content/uploads/2023/10/Bitcoin-Hashrate-Explodes-Hard-to-See-Big-Rise.png 1387w, https://bitcoinist.com/wp-content/uploads/2023/10/chart-4-640×270.png 640w, https://bitcoinist.com/wp-content/uploads/2023/10/chart-4-980×414.png 980w, https://bitcoinist.com/wp-content/uploads/2023/10/chart-4-768×324.png 768w, https://bitcoinist.com/wp-content/uploads/2023/10/chart-4-750×317.png 750w, https://bitcoinist.com/wp-content/uploads/2023/10/chart-4-1140×482.png 1140w” sizes=”(max-width: 1387px) 100vw, 1387px”/>
The 7-day average value of the metric seems to have been climbing in recent days | Source: Blockchain.com
As shown in the chart above, the 7-day average bitcoin mining hashrate has continued to rise in recent weeks and has reached new all-time highs.
The increase in hash rate is a constructive signal for the cryptocurrency as it leads to increased network security. Naturally, this is due to the fact that a 51% hack becomes more difficult to pull off the more mining rigs there are to attack.
This is also solely because the new hashrate being added to the network is sufficiently decentralized, as the same few entities that control the new mining rigs may not provide any security benefits.
Interestingly, the hashrate has continued to rise recently even though the price of the asset is not going through its best moment. Miners’ income depends on the price, as the block rewards they receive for solving blocks on the network are released in btc, meaning their value changes naturally with the spot price.
A feature of the bitcoin blockchain is that the speed at which miners can solve blocks (and therefore claim rewards) remains constant. However, this is temporarily broken every time these chain validators increase their available mining power (i.e. hashrate).
With the additional power, miners become faster than anticipated. To get them back to the standard pace, the network adjusts what is called the “mining difficulty” and increases it, so that it becomes harder for miners to traverse blocks.
Due to this restriction, the mining hashrate can also be considered as a measure of the competition present between these miners. The higher its value, the lower the proportion of rewards each individual miner can receive.
Due to the constant growth of the hash rate, the mining difficulty has increased and set its own ATHs.
<img decoding="async" class="alignnone wp-image-259527 size-full aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/1697149279_814_Bitcoin-Hashrate-Explodes-Hard-to-See-Big-Rise.png" alt="bitcoin Mining Difficulty” width=”1387″ height=”587″ srcset=”https://technicalterrence.com/wp-content/uploads/2023/10/1697149279_814_Bitcoin-Hashrate-Explodes-Hard-to-See-Big-Rise.png 1387w, https://bitcoinist.com/wp-content/uploads/2023/10/chart-5-640×271.png 640w, https://bitcoinist.com/wp-content/uploads/2023/10/chart-5-980×415.png 980w, https://bitcoinist.com/wp-content/uploads/2023/10/chart-5-768×325.png 768w, https://bitcoinist.com/wp-content/uploads/2023/10/chart-5-750×317.png 750w, https://bitcoinist.com/wp-content/uploads/2023/10/chart-5-1140×482.png 1140w” sizes=”(max-width: 1387px) 100vw, 1387px”/>
Looks like the indicator has been rising for a while now | Source: Blockchain.com
However, the recent hashrate growth has been particularly strong and in the next adjustment to the bitcoin network, the difficulty would increase by over 7% (if the hashrate remains at current levels until then). This adjustment would be among the largest the network has seen this year.
<img decoding="async" loading="lazy" class="alignnone size-medium wp-image-259526 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/1697149279_514_Bitcoin-Hashrate-Explodes-Hard-to-See-Big-Rise.png" alt="bitcoin difficulty adjustment” width=”640″ height=”212″ srcset=”https://technicalterrence.com/wp-content/uploads/2023/10/1697149279_514_Bitcoin-Hashrate-Explodes-Hard-to-See-Big-Rise.png 640w, https://bitcoinist.com/wp-content/uploads/2023/10/difficulty-1.png 671w” sizes=”(max-width: 640px) 100vw, 640px”/>
btc difficulty is set to see a large jump next Monday | Source: bitcoin/difficulty-chart#:~:text=The%20next%20Bitcoin%20difficulty%20adjustment,and%203%20minutes%20from%20now.&text=9.37%20min.,avg." target="_blank" rel="noopener nofollow">CoinWarz
btc Price
bitcoin has continued its recent bearish trend over the past 24 hours as the cryptocurrency has now fallen towards the $26,800 mark.
<img decoding="async" loading="lazy" class="alignnone size-medium aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/Bitcoin-Hashrate-Explodes-Hard-to-See-Big-Rise" alt="bitcoin price chart” width=”1534″ height=”869″/>
The price of the asset appears to have been tumbling down during the past few days | Source: BTCUSD on TradingView
Featured image by Brian Wangenheim on Unsplash.com, TradingView.com charts, Blockchain.com
