Bitcoin (BTC) might have plunged to six-month lows this week, but the network is now verifiably stronger than ever, according to a report by CoinTelegraph on Friday.
- Data from on-chain monitoring platforms including Glassnode and BTC.com affirmed that as of Friday, the Bitcoin network difficulty stood at a new all-time high.
- The difficulty, which evaluates how much miners need to work to solve the equations to process transactions on the blockchain, is the most critical element of Bitcoin network components.
- The metric automatically adjusts to increase or lower mining effort depending on miner participation; the more competition among miners causes greater difficulty. This has the effect of maintaining mining stability.
- After plunging mid-2021, difficulty took the rest of the year to recover, with the latest automated readjustment further increasing 9.32% to the prior level.
The difficulty comes after a higher hash rate that continually sets new record highs last year. The hash rate currently sits at 192 exahashes per second (EH/s) after reaching 218 EH/s on Jan. 10. BTC USD down -9.29%