Bitcoin mining difficulty hits record high, it will become more difficult if you don’t join the market

Once again, the difficulty of Bitcoin mining has hit a new all-time high!

According to data from btc.com, the difficulty of Bitcoin mining has been raised to 23.14T, an increase of 5.82%. This is the largest increase in difficulty since January 9 this year. The mining difficulty of 23.14T has once again set a new high in Bitcoin mining difficulty.

It is worth mentioning that there have been 6 increases in the 7 difficulty adjustments this year, and only 1 decrease. The average computing power reached 165.44EH/s, which is also a historical high.

As the price of Bitcoin soars, mining investment is heading to the moon. For example, large listed mining companies such as Hut 8, Marathon, and Blockcap have used 2021 as an opportunity to actively increase equipment deployment and expand operational capacity. The launch of these new machines has caused the Bitcoin hash rate and difficulty to soar.

At the same time, Bitcoin miners' income has also been growing, reaching a record high of $1.5 billion in March.

Difficulty adjustment is arguably one of the most important functions of Bitcoin mining, as it ensures that block production times remain relatively stable while also preventing large miners from monopolizing too much hashing power.

This time, the difficulty of Bitcoin mining was raised to 23.14T, a record high, with an increase of nearly 6%. It is the second largest adjustment this year and the fifth upward adjustment in the last six difficult periods.

This latest adjustment is a notable breakthrough as it is likely the result of thousands of new machines coming online, which are derived from unfilled orders in the ASIC mining supply chain of major manufacturers.

The delayed machines are shipped out of the factory in waves and deployed in mining farms for testing, which in turn continues to push up the difficulty of Bitcoin mining, which is basically consistent with the price of Bitcoin. In this way, it is not surprising that the difficulty of Bitcoin mining has increased this year.

However, the global chip production capacity is still limited and the supply is very tight! According to an insider of Bitmain, their mining machine orders have been scheduled until September 2022, and the situation of other manufacturers is similar.

The shortage of chip production capacity can slow down the rapid increase in the difficulty of Bitcoin mining to a certain extent. However, more importantly, it will affect the price trend of mining machines, and the downstream of the industrial chain will affect all links, which will eventually significantly increase the cost of all parties and make it increasingly difficult to enter the market. The difficulty of Bitcoin mining has reached a record high, and the reasons and results are here. (Juan Technology)