The Bitcoin miners are currently facing extreme challenges in mining, as BTC halving is arriving soon. What will happen if it keeps increasing?
Bitcoin mining difficulty is on the rise as miners are facing hindrances in mining. After recording the most significant percentage change in over six months, the network currently expected to hit a new level of difficulty.
According to statistics from BTC.com, the difficulty in Bitcoin Mining cited an increase of 8.45 percent from 14.72 trillion to 15.95 trillion. This is the all-time high ever experienced, and the difficulty percentage is estimated to rise even further in about two weeks. This will take the total value to 17.24 Trillion.
Why is the difficulty in Bitcoin Mining continually increasing?
Bitcoin mining difficulty is directly proportional to the errors accounted for by new network power. This means that the more hashing power invites more miners, and this would result in an increase in the difficulties of procuring Bitcoins. This acts as a method of delaying the block time to maintain an average of 10 minutes. Hence, if it takes less than 10 minutes to mine a single block, the difficulty increases, and if it takes longer, the difficulty slips down.
How is mining difficulty related to Bitcoin halving?
With the Bitcoin halving less than a month away, an increase in the mining difficulty could affect halving.
As Bitcoin’s block reward halves, some miners might resist other miners to increase their profits. This would make the mining difficulty much worse.
But, with just a few miners competing for the profit, the difficulty might eventually drop. This would allow the less sophisticated mining devices to increase the profit rates.
Source: Pratap Simha - Coinnounce