The Bitcoin mining difficulty has increased yet again, mining litecoin difficulty to the use of efficient mining equipment and increased digital currency demand. The Bitcoin mining difficulty has increased once again.
Bitcoin mining rewards halving in early July 2016. At present, the difficulty level stands at 225,832,872,179 compared to the earlier level of 220,755,908,330. The difficulty level correction is an inbuilt function in the Bitcoin software to ensure constant block generation times. The block generation time has a direct correlation with the difficulty levels and network hash rate. The use of latest mining hardware known for greater efficiencies increases the total hash rate of the Bitcoin network.
This, in turn, will significantly reduce the average time taken to discover new blocks. In such cases, the Bitcoin network starts to take corrective measures by increasing the difficulty levels. A comparison with Bitcoin price trends shows that the mining difficulty increases as the Bitcoin price increases and vice versa. The recent increase in mining difficulty can be attributed to the expansion of mining activities, introduction of more powerful mining hardware and an increased demand for the digital currency.
As we saw in the last couple of weeks, the value of Bitcoin has significantly increased since its fall in August, following the Bitfinex incident. The increase in Bitcoin value has coincided with the latest change in difficulty levels. The difficulty correction feature ensures a constant, steady supply of Bitcoin to the network. It prevents miners from investing in powerful mining equipment to mine large amounts of digital currency, which otherwise will lead to increased supply, resulting in the fall of Bitcoin prices. The constant stream of rewards combined with controlled mining will also ensure continued miners’ support to the Bitcoin network, at least until all the blocks are mined.