The recently booted fleets of ASICs that spurred the adjustments could indicate a higher increase in Bitcoin difficulty in the subsequent year.
On April 2, 2021, Bitcoin’s mining issues faced a record high after seeing an almost 6 percent increase. This move followed the record-month profiting Bitcoin miners owing to the new-generation ASICs that emerged online.
The issues refer to relative measures regarding the resource amount essential for mining bitcoin, i.e., BTC, -1.36%. These relative measures often keep on rising or falling based on the quantity of consumed power or the network-produced hash rate at a particular time. The cryptocurrency design balances its difficulty level almost every two weeks or after every 2,016 blocks to ensure mining of new blocks takes place at a stable rate.
Bitcoin’s mining difficulty level make record-breaking adjustments
The difficulty for mining bitcoin is quantified using a scoring scale where the cryptocurrency was launched with a mining difficulty rating of 1- the lowest score ever. (The bitcoin mining difficulty works similar to Google Search score, where the system for scoring is internal. It also does not have any measurement unit or point of reference outside the networks).
Based on the data available from CoinDesk journalist’s node for Bitcoin, currently, Bitcoin’s mining difficulty is based at 23.1 trillion. As per BTC.com figures, the difficulty increase was closer to 6 percent compared to its last difficult level based at 21.8 trillion. This increased level is the 2021’s second-largest adjustment and the fifth adjustment upward during the past six difficulty periods.
The Bitcoin difficulty adjustment is among Bitcoin’s prominent features and ensures the time for blocks to remain comparatively stable. At the same time, it also prevents a large miner from consuming excess hash rate.
The availability of delayed new ASICs increased bitcoin mining difficulty level and hash rate.
Whit Gibbs, the Compass mining CEO, while talking about the latest happenings, told CoinDesk that this new adjustment is a prominent bump as it’s similarly attributable to multiple new machines (from tens to thousands) that keep coming online. All of these were on backorder with ASICs supply chain.
Gibbs suggested the recent adjustment is simply a hashrate or flood sampler set to come online in 2022 after the back-ordered shipments come through.
Gibbs said, “Today’s moderately large difficulty increase is not surprising, and I expect it’s only a taste of what will come later in this year and into 2022, as delayed machine shipments start arriving and being deployed. The pending flood of hashrate about to enter the market will only continue pushing bitcoin’s mining difficulty higher, which should track with bitcoin’s price.”
Since Bitcoin prices have been going stratospheric, investments in bitcoin mining are rising record high. Prominent North American miners, namely Marathon, Blackcap, Hut 8, and others, have used the year 2021 as an opportunity for aggressive expansion of the operational capacity. As newer machines keep coming online, the hash rate for Bitcoin and its difficulty is increasing stepwise along with miner profits, which reached a record of $1.5 million during March.