U.Today – Yesterday, August 1, 2024, the mining difficulty of (BTC) reached an all-time high after a significant increase of 10.5%, reports Galaxy's head of research Alex Thorn. In percentage terms, this increase is the 24th largest since 2016, the 73rd since 2012, and the 119th largest of all time. However, in absolute terms, says Thorn, this marks the largest difficulty increase ever recorded.
The latest difficulty adjustment shows that competition between miners is increasing as the Bitcoin network expands and becomes more complex following this year's halving.
Higher mining difficulty typically means a harsher environment for miners, which can impact the overall security of the Bitcoin network and the efficiency of mining operations. This could lead to higher operating costs for miners, which could influence the future dynamics of Bitcoin's price.
Meanwhile, as of today, the price of Bitcoin stands at $62,800. Over the past 24 hours, the trading volume reached $44.9 billion. The quotes of the main cryptocurrency have experienced a 3.9% decline since the start of the new trading session, with the daily high recorded at $65,600 and the daily low at $62,600.
The big change in difficulty could have an impact on the stability of Bitcoin's price and how people in the market make their decisions.
It is not easy to determine how mining difficulty affects the price of Bitcoin. On the one hand, it could make mining more difficult, but on the other, it could indicate that the network is more secure, which could affect investor opinion on the matter and market behavior.
This article was originally published on U.Today
