Bitcoin mining is the act of “mining” the bitcoin cryptocurrency through a series of energy-intensive hardware and computers. It has since been reported by Ihodl that bitcoin mining difficulty has now reached an all-time high.
The mining difficulty level increased by 11.3%, which is the highest it has ever reached. Nairametrics further reports that a big part of its increase in difficulty is due to its third largest positive adjustment in the past two years. Crypto mining involves complex tasks in which algorithms affirm transactions and subsequently fix them into blocks on the blockchain. Bitcoin miners must possess strong mathematical abilities and technical skills, especially regarding computers.
Cointelegraph further reported that this has been the second major adjustment in bitcoin mining difficulty levels since its halving. Further, the increase in mining difficulty levels purportedly correlates with its triggers. All bitcoin miners must calculate to solve for the next block. The more hashpower at hand allows the process to move more speedily along.
Satoshi Nakamoto, the alleged creator of blockchain, hoped to maintain an even interval of not more than 10 minutes between block creation. To achieve this, he embedded a feature into the blockchain that increases the level of bitcoin mining every second week. The two recent adjustments are therefore a manifestation of the immense increase in hashpower. This allows for the creation of more blocks more quickly. Thus, the blockchain responds by immediately increasing the difficulty of mining. Cointelegraph purports that this shows that the blockchain network and relevant technologies are functioning extraordinarily healthily.
Inner Mongolia, a region of China, amongst other crypto-mining hubs, recently announced that they would remove significant subsidies on electricity, thus hampering the abilities of cryptocurrency mining in that country. Meanwhile, Abkhazia, an autonomous region of Georgia, recently announced that crypto-mining depletes its electricity reserves.