As networks become more popular, Bitcoin mining becomes more difficult. This is far from what was expected after China, then known as the world’s mining capital, banned the mining of cryptocurrencies altogether. Bitcoin miners have been able to successfully establish in other parts of the world, and mining activity has skyrocketed since then.
This time, as the blocks mined per hour grew, all expectations were shattered. Not only was the difficulty of the mining industry affected by this, but the impact is felt throughout the mining industry.
Difficulty in Bitcoin mining with the new ATH?
Block production was higher than expected, exceeding the previous goal of mining 6 blocks per hour. This number is now 6.2 blocks mined in an hour. This increase in block production has led to an increase in the difficulty of mining, which has pushed it towards record highs. In the future, the difficulty of mining is expected to be adjusted to 4-5%.
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If this happens, you can easily send Bitcoin mining difficulty to the highest ever. It continues to follow the growth trend that began in August 2021 after China’s ban came into force. Given that China’s ban dropped Bitcoin’s hash rate by 50% last year, it would exceed all expectations.
BTC hash rate on the rise | Source: Arcane Research
Miners enjoy more profitability
It’s not just the difficulty of mining that is affected by rising block production. Others like daily miners’ income are on the rise. The Bitcoin mine saw a 6.86% change last week ending March 28th. That’s an increase of over $ 2 million in seven days. It’s also important to note that the same day’s earnings increased by 7% in the previous week.
BTC declines to $45,000 | Source: BTCUSD on TradingView.com
Daily trading volumes also recorded an increase over the same period. Daily trading volume increased by a total of 11% to reach $ 6.4 billion. This was the result of a recorded increase in average transaction volume, given that the daily transaction volume increased by only 1.5%. The average transaction volume for the 7 days that collated this data increased by 9%.
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Transaction fees showed the highest growth of the week. Given the growing demand for blockspace, transaction fees have risen steadily since then. Daily transaction fees have increased by 20% and are now $ 460,000 per day.
Featured image from Investopedia, chart from TradingView.com