Bitcoin Mining Difficulty Expected to Reach 18,285,582,891,092 During Next Adjustment

Latest Cryptocurrency News
Tue, 09/15/2020 - 15:41
Alex Dovbnya
Bitcoin mining difficulty is projected to spike 11 percent this Sunday, touching a new all-time high
Bitcoin Mining Difficulty Expected to Reach 18,285,582,891,092 During Next Adjustment
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Bitcoin's mining difficulty is expected to increase over 11 percent on Sept. 19, which would be the second-largest positive adjustment this week.

Mining pool BTC.com has a more modest projection of 5.64 percent; this would cause the difficulty to log another all-time high of 18.29 tln.

Mining difficulty
Image by btc.com

Bitcoin's mining difficulty and hashrate surge in tandem

In layman's terms, mining difficulty indicates how hard it is for a computer to produce one block that rewards miners with 6.25 BTC.

Bitcoin's mining difficulty adjusts with every 2,016th block. Depending on the speed at which these blocks are mined, this happens roughly once every two weeks.

If blocks are created faster than usual, the difficultly tends to increase, thus preventing miners from overproducing coins (and vice versa).

The metric plunged 15.95 percentthe second-biggest drop in Bitcoin's historyfollowing the historic March 12-13 crash that forced miners to shut down their equipment.

Fast forward to mid-September: The difficulty is now marching to new lifetime highs in lockstep with the hashrate, another key metric that displays the total computational power of the Bitcoin network.

Related Bitcoin Difficulty Logs Its Highest Positive Adjustment Since January 2018
Related
Bitcoin Difficulty Logs Its Highest Positive Adjustment Since January 2018

Why it takes 2,016 blocks

As explained by Bitcoin advocate and entrepreneur Andreas Antonopoulos, adjustment cycles are designed to be that long in order to avoid frequent oscillations of the coin's hashrate.

When the difficulty changes, miners might decide to leave the chain to go to another chain that is more profitable.

Bitcoin Cash, the biggest fork of Bitcoin, tweaked this parameter by starting to change the difficulty with every mined block. The difficulty adjustment algorithm is at the core of another heated debate within the spin-off communitywhich appears to be on the cusp of another split.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.