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Bitcoin Network Difficulty Hits 1-Year High as Price & Hashrate Soar

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• Bitcoin’s network difficulty recently reached close to 40.0T, a level not seen in over a year.
• The increase in network difficulty is due to the recent surge in price and hashrate of Bitcoin.
• The Bitcoin network difficulty adjusts itself every 2016 block (about every two weeks) to keep the average time to mine a block at 10 minutes.

Bitcoin [BTC], the world’s leading cryptocurrency, has seen a remarkable ascent in its price and other accompanying metrics. Most notably, the network difficulty, which is an important metric for gauging the difficulty of mining new blocks in the Bitcoin blockchain, has been on the rise. Blockchain.com’s stats show that the difficulty was very close to 40.0T at the time of writing, which is the highest in more than a year.

The Bitcoin network difficulty adjusts itself every 2016 block (about every two weeks) to keep the average time to mine a block at 10 minutes. This means that the difficulty becomes more challenging to mine a block as the difficulty increases, and vice versa. It is also worth noting that adding extra computing power (hash rate) to the Bitcoin network increases the network’s difficulty, making it harder for miners to solve the cryptographic puzzle needed to mine a block.

The current Bitcoin hashrate indicates an increase in computing power. After the hashrate dropped in December 2022, observed data revealed a surge in January 2023, indicating a higher monthly contribution. This increase in hashrate is likely due to the increase in the price of Bitcoin, as miners often use the most profitable coins to mine.

The remarkable ascent of Bitcoin [BTC] is an important development in the broader cryptocurrency community. Not surprisingly, the price increase seen by other coins and tokens followed the king coin’s price increase. The rise in network difficulty is yet another indication of the growing demand and interest in Bitcoin and cryptocurrencies in general.

It is important to note that while the network difficulty of Bitcoin is currently close to the highest it has been in more than a year, it is still far lower than the all-time high of 70.7T seen in August 2018. As the demand and usage of Bitcoin continue to grow, the network difficulty is likely to increase further in the coming months.