Bitcoin (BTC) may have fallen to its lowest level in six months this week, but it is now confirmed that the network is stronger than ever.

Data from on-chain monitoring resources including Glassnode and BTC.com confirm that Bitcoin network difficulties have reached an all-time high as of Friday.

Difficulty level exceeds 26 trillion for the first time
Difficulty, which measures the amount of work miners need to work on solving equations to process blockchain transactions, is undoubtedly the most essential component of the Bitcoin network.

The calculation is automatically set to increase or decrease the mining effort depending on the miner’s participation – the more competition between miners, the higher the degree of difficulty.

This allows you to maintain stable mining regardless of factors such as sentiment, price, or unexpected events.

After declining in mid-2021, difficulties returned throughout the remainder of the year, with the latest automatic adjustment adding 9.32% to the previous level. In doing so, it entered an uncharted territory spanning more than 26 trillion years.

Commenting on the incident, crypto journalist and commentator Colin Wu noted that growth was the highest in more than six months, as data from BTC.com confirmed a recent correction of over 10% in late August.

BTC Price Drop Can’t Stop Mining
Thus, the complexity that logically follows from the high hash rate has consistently led to new records being set in the past year.

On the topic: Overcoming the ‘bear market’ of Bitcoin demand will trigger the next BTC rally – Analysts

According to MiningPoolStats, the hash rate, an estimate of the computing power allocated by miners to the blockchain, is currently 192 exahhashes per second (EH/s), having reached 218 EH/s on January 10.

Bitcoin hash rate for the week beginning January 17 (screenshot). Source: MiningPoolStats
As Cointelegraph often mentions, an old mantra among old scammers is that “price follows hash rate”. This trend continues to take a back seat for many as the fundamentals move in the opposite direction to the spot price.

Thus, the high hash rate indicates that miners’ optimism about the profitability of their operations remains for a longer period of time. Calculations last week showed a break-even point of around $34,000.

Source: CoinTelegraph

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