Bitcoin (BTC) Mining Difficulty Approaching All-Time High – Good or Bad?
As the price of Bitcoin (BTC) has managed to rebound and approaches $ 19,000 again, the network has experienced a difficulty adjustment. What does this mean for the biggest cryptocurrency?
Bitcoin (BTC) experiences an increase in mining difficulty
The mining difficulty of the Bitcoin Champion network was automatically adjusted yesterday. It increased by + 8.87% . The last adjustment also increased the difficulty by + 4.82% on November 16:
According to Mathieu Vincent, of Summit Mining, the increase in mining difficulty was inevitable, while the price of Bitcoin has been soaring for several weeks:
“Each new computer plugged in increases the difficulty. The higher the price, the more users want to mine, because it is more profitable. I ls plug so all they can and buy everything they can to undermine, pushing the difficulty of mining up … C e reduces the passage profitability. “
The trend should therefore be confirmed if the price of Bitcoin continues to approach its record, which is not necessarily a bad thing, according to Mathieu Vincent:
“It’s not bad, it’s just natural. Increasing Bitcoin mining difficulty is less positive for miners because the pie stays the same and there are more people to share it with. But for the rest of the world, it has no impact. “
The announcer of a price increase?
In any case, Bitcoin’s mining difficulty is now approaching its all-time high, which was established at the end of 2017, when the price of Bitcoin also reached its all-time high. The crypto community has therefore not failed to make the connection, believing that this is a particularly positive sign for the price of BTC.
Indeed, a sudden increase in the difficulty of mining had been in 2013 and 2016 heralding a prolonged bull run. But will this be the case here? The price of BTC has hit a wall several times trying to break through the psychological barrier of $ 20,000 in recent weeks. So much so that he suddenly lost -16% in the space of a day. But he has been able to bounce back since:
After taking + 13% over the weekend , the Bitcoin price is once again seeking $ 19,000. Will it finally manage to exceed the threshold of 20,000 dollars, reaching a level never seen in its history? It remains to be seen.