record-breaking difficulty in extracting bitcoins as prices fall
The difficulty of extracting bitcoin reached its historical peak yesterday. Experts believe that the coincidence of this record-breaking event with the sharp fall in prices means that bitcoin miners are still willing to expand their activities and extract new units.
Why not tell someone we have bitcoins!
According to the Coin Telegraph, the difficulty of extracting bitcoins has recently reached a record of 26.642 trillion and the average hash rate has reached 190.71 exacerbations per second (EH/s), which indicates the remarkable activity of bitcoin miners despite falling prices.
The difficulty of extracting bitcoins is obtained by measuring the total computing power of the network, which is related to the difficulty of verifying transactions and extracting new units.
As data from China.com (Blockchain.com) shows, the rigidity of the network has decreased between May and July 2021 (May and July) for a variety of reasons, including a total ban on cryptocurrency mining in China.
Diagram of bitcoin mining difficulty
- However, as the expelled miners from China resumed operations in other countries, the network's difficulty has improved significantly since August 2021. As a result, yesterday, January 22, the bitcoin network hit its all-time high of 26.643 trillion.
- The BTC.com website also estimates, based on its data, that the network will once again have the most difficulty in extracting its history in the next 12 days at 26.70 trillion.
Estimate the difficulty of extracting bitcoins for the next 12 days.
- In the last four days, the "F2Pool" pool, with 88 blocks of bitcoins, has had the largest share in increasing the hash rate, followed by Poolin with 76 blocks.
- As of yesterday, the average Bitcoin network fee was approximately $1.58 per transaction; the amount had risen sharply to $62.78 in April 2021.
- Despite the Federal Reserve's decision to implement contractionary monetary policy, which has increased sales pressure in the cryptocurrency market, Bloomberg analyst Mike McGlone has said that Bitcoin has a chance to continue its uptrend.
- McGellon says bitcoin will have a better chance of growing if investors accept the currency as a digital asset to preserve the value of their capital.
- McGellon believes bitcoin is in a unique position and can perform better in an environment where declining monetary stimulus can put pressure on risky assets.
Digital currencies are at the top of the list of high-risk assets. The devaluation of risky assets is helping the Federal Reserve fight inflation.
Bitcoin could be the main beneficiary of this scenario as it becomes a global reserve asset.