The Bitcoin (BTC) mining landscape is about to experience a new challenge as mining difficulty is set to increase by almost 8% today, February 15. According to CoinWarz data, this increase, which is expected to set a new record, will surpass 81 trillion at block height 830,592. This marks a continuing trend seen since the beginning of the year, reflecting the increasing computational demands facing miners on the premier digital asset network, especially as the halving event approaches.
Increased mining difficulty
Bitcoin’s mining difficulty adjusts every 2,016 blocks, i.e. approximately every two weeks. This process is essential for the network to assess whether miners’ activities during the period have led to a reduction or increase in block discovery time. An increase in mining difficulty means that miners have to deploy more computational power to mine a block. In addition, it indicates a growing influx of miners into the network, intensifying the computational workload. Furthermore, higher difficulty equates to a more resilient blockchain, as it increases the energy required to launch an attack on the network.
Minors under surveillance
The increase in mining difficulty comes at a time when the industry continues to face scrutiny due to its use of electricity. Last week, CryptoSlate reported that the US government, through the Energy Information Administration (EIA), wants to gather information from miners on the wider implications of their activities in the country. However, the mining community has described the move as “Operation Chokepoint 3.0.”
Dennis Porter, CEO of Satoshi Act Fund, revealed that miners have begun receiving letters forcing them to report sensitive data or “face heavy fines” if they don’t respond within ten days. “This is NOT how the federal government should interact with a new and growing industry that has so much potential. The Bitcoin mining industry is full of innovators and builders. We should be encouraging them, not threatening them,” Porter said.
Conclusion
The record increase in Bitcoin mining difficulty underlines the dynamic evolution and challenges facing the cryptocurrency mining industry. With increased scrutiny from regulators and growing environmental concerns, the industry is at a crucial turning point. It remains to be seen how it will navigate these turbulent waters while continuing to innovate and build the future of decentralized finance.
