The cryptocurrency market and especially the Bitcoin market has been on a very aggressive upsurge in the last 24 hours. Bitcoin has breached $12,000 and $13,000 and now approaching $14,000 within 24 hours, a rare feat in the history of its existence.
It is not only Bitcoin price that is on the rise though, its mining difficulty has also increased significantly in the last 24 hours.
Bitcoin Mining Difficulty to Increase 6.64% in 4 hours
So far, the difficulty of mining Bitcoin has increased to 7.41 T at the time of writing this article. It is expected to further rise to 7.91 T in the next 4 hours. This will surpass the all-time high of 7.45 according to data from BTC.com.
Also according to the website, Bitcoin’s hashrate at the time of writing this article is at 57.73 EH/s. As this shows a similarity to the difficulty, it could also be increasing as the difficulty continues to rise.
The average number of transactions per second is also currently at 4.18 in the last 24 hours. This is currently the highest since an all-time high of 4.7 in mid December 2017. These are interesting developments and the question is why is difficulty rising at this time?
Bitcoin Mining Difficulty Increases with Price
The Bitcoin network is designed to work with different difficulty at different times depending on how many nodes are on the network. Fortunately, this gives an indication of ongoing changes so that we can tell what is going on based on mining difficulty and other metrics.
Mining difficulty on the network is historically associated with the rising price of Bitcoin. This is why the all-time high mining difficulty of Bitcoin was around the all-time high Bitcoin price of $20,000.
Currently as the market is surging, it is hardly surprising that the difficulty is on the increase. This could increase further and as a result, the Bitcoin network becomes more secure in the process as more nodes validate transactions.
The hashrate is also an indication how fast the computers on the network can solve the mathematical problem that results in mining of new coins. An increase in this has also been shown to correlate with Bitcoin price so it is expected to increase in a bull market such as this.
The difficulty and hashrate also suggest a possible future rise for the price of Bitcoin and as such, the current situation could mean that Bitcoin has a brighter future ahead.
Bitcoin is still growing steadily so far and analysts think it could continue until it hits the 2017 all-time high. At the time of writing, it has gained over 20% in the last 24 hours and still growing. If the price continues to rise, it is likely that the network difficulty will hit a new all-time high in the next few days as the price attempts to reach a new all-time high too.