Security is improving on Bitcoin. Yesterday we learned the defeat of the SEC in the case which opposed it to Grayscale. Quickly, the course of Bitcoin reacted positively to the news by increasing 5%until passing over $27,000. However, it is not the only green indicator for Bitcoin. Indeed, the mining difficulty on Bitcoin just broke a record.
Bitcoin’s hashrate hits a new all-time high
You are not unaware of it. The network Bitcoin is miner safe. These provide computing power to solve proofs of work (PoW).
On July 8, the hashrate of Bitcoin recorded a new recordreaching the 448,000,000 TH/s. This represents an increase of almost 100% compared to last year and 60% since the beginning of the year. As a reminder, the hashrate refers to the computing power delivered by the Bitcoin network.
For its part, the mining difficulty has also reached a new record. Difficulty is an indicator that measures how difficult it is for a miner to find and validate a new block. In more detail, the difficulty has passed the bar of 55.62T. It has never been so difficult in the history of Bitcoin to mine new BTC.
In practice, this increase is not surprising. Indeed, the difficulty is a direct function of the network hash power. Therefore, if the hash rate increases, the difficulty will also increase to ensure that the production time of a block remains constant, around 10 minutes.
This should continue to rise in the coming days. Indeed, according to data from Bitinfocharts, the average block time recorded on August 29 was just over nine minutes. Therefore, the difficulty should continue to increase until the block time stabilizes at around 10 minutes.
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Miners wait for the halving
According to some observers, such as CryptoQuantthis rise in Bitcoin’s security alongside a stagnant price of the asset would imply a undervalued asset.
Miners would thus have a low rate of sale on the newly created BTC. This can be interpreted as an indicator of miners’ confidence in Bitcoin’s price recovery.
Indeed, they know it. The halving is around the corner. Eh yes ! Next April, the fourth halving will take place on Bitcoin. As a result, mining rewards are going to be halved from 6.25 BTC per block to 3.125 BTC.
In anticipation, miners accumulate their BTC by betting on a rise in price after the halving.
Miners aren’t the only ones hoarding Bitcoin. Indeed, Robinhood could well be the whale that accumulates BTC since the beginning of the year. In total, the wallet holds $3 billion in BTC.
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