Bitcoin halving event, both hash rate and difficulty have brought the level to a new all-time high of over 17.3 trillion and saw a change of +9.89% after its last week’s record.
On July 13, it has been reported that instead of a lack of recent significant Bitcoin (BTC) price action, the fundamentals securing the network are as healthy as they have ever been, as this is more positive news for investors concerned about a previous drop in hash rate and difficulty after May’s third reward halving event.
However, some analysts predicted that the reward halving earlier this year would lead to mass capitulation from unprofitable miners.
As per the report, there was a significant drop in hash rate immediately after the halving, followed by two reductions in the mining difficulty. But an upwards difficulty adjustment of 14.95% last month almost reversed the previous two falls on its own.
Bitcoin mining difficulty jumps nearly 10% to reach all-time high https://t.co/AzB2RTMe2e — Cointelegraph (@Cointelegraph) July 13, 2020
With both hash rate and difficulty now at historic highs, any concerns around the impact of the halving now seem to have been proven unfounded.
Likewise, the mining difficulty gets automatically adjusted every 2016 blocks or approximately 14 days, in order to ensure that new blocks are produced every 10 minutes on average.
Generally, it fluctuates with the hash rate, though the overarching trend tends to be upwards.
Higher difficulty can also have an impact on mining profitability, which causes some miners to sell up.
Thus, when this happens, it can potentially force the hash rate back down again.
Source: Cointelegraph | Image: Blokt