The hash rate of the Bitcoin (BTC) network achieved a new record high, despite the challenges faced by the leading cryptocurrency in surpassing the $40,000 threshold.
On Thursday, the network’s hash rate soared to a peak of 258 EH/s before stabilizing around 220 EH/s. This uptrend indicates a surge in the number of miners operating on the blockchain. Following a dip below 70 EH/s due to the Chinese crypto mining ban last year, the Bitcoin network hash rate has surged by over 400%.
After overcoming a significant decline in hash rate towards the end of the previous year, the Bitcoin network has displayed consistent growth in 2022. The network has also witnessed a surge in mining difficulty, hitting a new all-time high of 29.70 trillion. The adjustment in mining difficulty is aimed at maintaining a 10-minute block generation time. An increase in mining difficulty implies heightened competition among miners seeking to mine the next block.
Data sourced from BTC.com reveals that Bitcoin mining difficulty rose by 5% on April 27 and has undergone three positive readjustments and two negative ones this year. The upcoming difficulty adjustment is scheduled for May 10.
Despite enduring regulatory challenges, the Bitcoin network has proven resilient over time. The surge in mining difficulty and network hash rate coincides with ongoing discussions regarding a transition in Bitcoin’s consensus mechanism from the current proof-of-work to proof-of-stake.
Greenpeace, climate advocacy groups, and Ripple (XRP) co-founder and executive chairman Chris Larsen have launched a campaign advocating for a more eco-friendly consensus model for Bitcoin. Nevertheless, staunch supporters of Bitcoin’s existing mining protocol argue in favor of its decentralized nature.
While the energy consumption of Bitcoin remains a contentious topic, misleading narratives predicting its excessive energy consumption by 2022 have surfaced. As Bitcoin garners mainstream acceptance, several mining firms prioritize sustainable mining practices.
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