Bitcoin’s price has stabilized above the $ 18,000 region in recent days, while crypto mining difficulty continues to increase
The mining difficulty on the Bitcoin network is approaching a new record, after rising 8.9% in the last 24 hours. The Bitcoin network (BTC) hashrate is now above 130 EH / s. The data provided by on-chain analytics provider Glassnode revealed that the mining difficulty is now less than 5% from setting a new record.
Glassnode tweeted that “The #Bitcoin mining difficulty has increased by 8.9% today. It is now only 4.4% below its ATH. ”
Bitcoin’s price has surpassed the $ 19,000 mark for the first time in three years, but has dropped to less than $ 17,000 more than once a week, as bulls and bears struggled to control the market. However, the price has gone up more than 5% in the past 24 hours and the BTC is currently trading at $ 18,508.
The increase in mining difficulty has generated excitement in the cryptocurrency market, as similar events marked the previous bullish cycles of 2013 and 2016. However, it is not yet clear whether the current bull run would set a new historical record after Bitcoin came 3% closer to reaching its previous record.
While an increase in mining difficulty may be good for the price of cryptocurrency, it is not a good view for users. An increase in mining difficulty implies higher rates for users and more time needed to generate a block. This means that the transaction time on the network would be longer and there would be an increase in the number of unmined transactions in the Bitcoin mempool.
Ethereum hash increases as developers prepare Ethereum 2.0
The increased difficulty of mining is not restricted to the Bitcoin network. According to Glassnode, the Ethereum chain set a new record for mining difficulties on 27 November. This caused the price of ETH to drop from $ 600 to $ 513 in a few days. However, Ether is on the rise, as it currently rose more than 10% in the past 24 hours and traded at $ 587 per currency.
The growing difficulty of mining Ethereum comes at a time when network developers are preparing to launch Ethereum 2.0. The launch of Ethereum 2.0 would see Ethereum switch to a Proof Of Stake protocol instead of its current Proof Of Work protocol. Mining difficulties would no longer be a problem, as the network would involve staking coins.