The Bitcoin mining difficulty reached a new all-time high of 92.67 trillion on September 11. This represents a 3.04% increase over the last 24 hours and continues an upward trajectory in mining competition.
JUST IN: #Bitcoin mining difficulty hit a NEW ALL-TIME HIGH ? pic.twitter.com/vhq0ClEXRW
— Bitcoin Magazine (@BitcoinMagazine) September 11, 2024
The Bitcoin difficulty chart plots the historical increases and decreases in mining difficulty over time. It measures how hard it is for miners to find a valid hash for the next block. Higher difficulty requires more computing power to mine new Bitcoin.
When combined with the Bitcoin price, difficulty helps determine miners’ profitability and return on investment. The metric soared in 2024 amid massive growth in Bitcoin’s overall hash rate and adoption.
The rising difficulty shows intensifying competition on the Bitcoin network as more miners fight for limited block rewards. This is generally constructive for network security and decentralization.
Despite rough market conditions this year, the difficulty increase displays the unprecedented demand for Bitcoin block rewards. It underlines the incredible security offered by the collective computing power of miners around the world.
The difficulty adjustment algorithm built into Bitcoin’s code dictates the pace of change in mining competition. It is programmed to find blocks approximately every 10 minutes, maintaining a steady influx of new Bitcoin over time.
This predictable Bitcoin issuance schedule makes its inflation rate easy to model and appeals to investors compared to fiat currencies subject to central bank policies.