86T Milestone: Bitcoin Mining Difficulty Peaks Before Halving Event

The challenge of Bitcoin mining escalates as it anticipates the momentous halving event, set to slash miner rewards by half.

Data from BTC.com reveals that Bitcoin’s mining difficulty has surged to a record-breaking 86.4 trillion, marking another adjustment preceding the impending halving.

The latest adjustment, which took effect on April 10, increased Bitcoin mining difficulty by 3.4% from the prior level of 83 trillion, established on Mar 28.

The past five Bitcoin mining difficulty adjustments as of April 10. Source: BTC.com

The upcoming Bitcoin mining difficulty adjustment is poised to be the final one preceding the halving event.

As per BTC.com, the subsequent Bitcoin mining difficulty adjustment is slated to happen in 13 days, approximately around April 24. CoinMarketCap data indicates that the Bitcoin halving is anticipated to occur in eight days, specifically on April 19.

Bitcoin mining difficulty shows how tough and time-consuming it is to mine a new block or solve math problems in Bitcoin’s proof-of-work (PoW) system.

However, BTC adjusts its mining difficulty every 2,016 blocks or about two weeks. Bitcoin tweaks this difficulty to keep the block time around 10 minutes.

The harder it is for miners to mine, the more powerful the computers they use. This power is measured by the hash rate, a yardstick for how fast they can churn out new bitcoins.

Bitcoin Mining: Facing Halving Challenges

Moreover, as Bitcoin mining gets harder, the BTC hash rate has recently shot up. According to BTC.com, it went from about 619 exahashes per second (EH/s) on Mar 28 to 696 EH/s on April 10.

While the difficulty increased on April 10, the Bitcoin hash rate hit its highest earlier.

BitInfoCharts data shows that the Bitcoin hash rate hit the highest on Mar 24, reaching 727.9 EH/s.

Bitcoin hash rate three-month chart. Source: BitInfoCharts

Some experts reckon the BTC hash rate might decrease after the next Bitcoin halving in 2024.

However, Galaxy’s mining folks reckon that when the BTC halving occurs, about 20% of its hash rate might drop out. It seems like lots of miners use Manyir rigs because they won’t be as efficient after the halving.

They also mentioned that by the end of 2023, nearly 70% of the Bitcoin hash rate came from just eight types of miners.

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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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