The Bitcoin (BTC) mining difficulty has hit at a new all-time high of 17.3 trillion, exceeding the previous all-time high of 16.1 trillion which occurred just before the May block halving. This means that mining Bitcoin (BTC) is harder than ever before, but simultaneously this is a bullish sign for the crypto mining industry, since it means the mining industry is coming back to life.
The Bitcoin (BTC) mining difficulty is a parameter which determines how much hashing operations it takes to calculate a block, so a higher mining difficulty means it takes more hashing to solve a block and get the block reward of 6.25 Bitcoins (BTC).
Originally the Bitcoin (BTC) mining difficulty was set at just 1, so the fact that it is now over 17 trillion is truly a testament to how the Bitcoin (BTC) network hash rate has exponentially grown.
Further, unlike the early days of the crypto space where significant amounts of Bitcoin (BTC) could be mined with a CPU or GPU, now it takes powerful mining machines that cost thousands of dollars to even mine a small amount of Bitcoin (BTC).
The most important aspect of this mining difficulty record high is that it shows the mining industry has come to life following the block halving. Initially the hash rate crashed from 136 EH/s to 75 EH/s following the halving due to mining revenue being slashed by 50%. It took some time for the hash rate to recover, but it’s now hovering between 120-130 EH/s, which is near record highs.
Ultimately, this new mining difficulty record is a sign that the mining arms race is back on. Rather than mining machines being turned off and being liquidated due to a lack of profitability after the halving, now miners are rapidly buying up powerful rigs and deploying them as fast as possible to stay competitive.
Overall, the biggest winner in this situation is not the miners, but mining manufacturers like Bitmain and MicroBT, since Bitcoin (BTC) mining rigs are back in demand rather than sitting idle in inventory.