Bitcoin, a proof-of-work (PoW) blockchain, depends on its mining process to ensure the security and stability of its network. This involves the activities of miners that utilize special mining machines and electricity to operate Bitcoin nodes. Over the years, mining attracted different miners when BTC prices were high. However, the BTC mining difficulty and the network hash rate have their role to play in block rewards. From a recent report, the BTC mining difficulty is about to hit a new 7-month high this week. The trend of activities is creating a readjustment from the sequential information obtained over the years for the leading global cryptocurrency. Related Reading: WATCH: Bitcoin Versus DXY And The Dangerous TD9 Setup | Daily TA August 30, 2022 The BTC mining difficulty adjustments will occur every 2,016 blocks. But the network has witnessed a reduction in this value over the years, especially during the summer seasons. Also, banning mining in countries like Iran and China due to high energy consumption contributed to the decline. Adjustments in Bitcoin mining difficulty are crucial for the network’s functionality as a blockchain. This is because it defines the ease or difficulty of the mining process on the network based on the number of miners working on the blockchain. Usually, with more miners operating on the network, it becomes more difficult to receive rewards and vice-versa. The adjustment process ens...
