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Bitcoin mining difficulty reached a new ATH making it difficult for miners to try its future prospects.
The Bitcoin price has been exponentially suffering over the past few days, and this is not quite unknown to cryptocurrency enthusiasts that the crypto has been under a dark spell that drove the BTC token price well below US$29,000, from its all-time highs of US$67,000 in November 2021. Investors and crypto analysts are losing their hopes as Bitcoin continues to suffer at the hands of global economic and financial downturns, increased crypto regulations, and other factors. Besides, one such factor that affects Bitcoin and its network’s reputation is the Bitcoin mining difficulty. Data reveals that Bitcoin mining difficulty has reached new all-time highs and miners are now able to produce blocks at a much swifter rate than BTC is actually programmed for. The mining difficulty of Bitcoin has reached a new ATH and that in turn is adversely affecting the already declining market value of Bitcoin. Currently, most Bitcoin miners are migrating to Ethereum due to its greater return on investment. Mining Ethereum became even more profitable when the crypto toppled the US$4,000 resistance back in 2021. And currently, with ETH 2.0 nearing its launch, it has become increasingly difficult for Bitcoin to remain the crypto king. With these developments coming up, more and more miners are migrating to the Ether network and avoiding sudden crashes in the middle of their business.
Even though Bitcoin is the most influential cryptocurrency in the market, its mining procedure is the most controversial. Almost every BTC investor is aware of the dark sides of investing in Bitcoin, and one of them is its mining procedure. Although mining of several cryptocurrencies has advanced from their initial stage of harmful cryptocurrency mining, there are still several major cryptocurrencies that use environmentally harmful algorithms using massive amounts of energy and leave major carbon footprints. But Bitcoin mining is also one of the many ways that investors and BTC fanatics use to earn profits. But as Bitcoin mining difficulty grows, so do the investors’ interests in the crypto.
Bitcoin Mining Difficulty Reaches ATH!
Over the past couple of years, Bitcoin’s mining difficulty rose significantly due to added hash power on the network. The difficulty in Bitcoin mining is adjusted to compensate for increased hash power to make sure that the block times remain consistent for about ten minutes. Back in 2015, Bitcoin miners realized a considerable amount of increase in Bitcoin hash power. And now in April 2022, Bitcoin experienced its fourth time in the all-time increase in Bitcoin mining difficulty. In fact, Bitcoin mining difficulty increased again as BTC prices struggled to keep the cryptocurrency relevant in the market.
Experts believe that Bitcoin mining difficulty has been on a rise over the past year and this trend will continue further. As the BTC token price is declining recently, miner profits will continue to shrink. This is one of the many reasons why mining stocks that performed so well last year, are drastically suffering right now. Besides this, a prolonged period of inflation, high temperatures, and a stagnant growth of Bitcoin are making it even more difficult for miners to keep believing in the crypto’s future prospects.