Although Bitcoin (BTC), may have fallen to six-month lows last week, it is still a verifiable strong network.
According to data from Glassnode, an on-chain monitoring resource that includes BTC.com and Glassnode, the difficulty of Bitcoin’s network as of Friday is at an all-time high.
For the first time, 26 trillion people are able to overcome difficulty
The most fundamental component of the Bitcoin network is the difficulty. It describes how hard miners have to work in order to solve the equations that process transactions on the blockchain.
The metric adjusts automatically to increase or decrease the mining effort based on miner participation. The more competition there is, the greater the difficulty.
This keeps mining stable, regardless of price, sentiment or unintended events.
The difficulty index dropped in the middle of 2021. However, it took the remainder of the year for the index to rebound. It then climbed to 26 trillion, an unexplored territory.
Colin Wu, a cryptocurrency journalist and commentator, commented on the event. BTC.com data confirms that the last adjustment of over 10% occurred in late August.
BTC price drop fails to break the resolve of miners
This logically followed the higher hash rate, which had set new records last year.
Related: Analysts predict next BTC price explosion after breaking the ‘bear’ market in Bitcoin demand
According to MiningPolStats, the hash rate is an estimate of the processing power that miners dedicate to the blockchain. It currently stands at 192 exahashes each second (EH/s) and briefly reached 218 EH/s Jan. 10.
Screenshot: Bitcoin hash rate for the week starting Jan. 17 (screenshot). Source: MiningPoolStats
Cointelegraph reports that an old saying among hodlers is “price follows haveh rate”, although this trend still holds true for many, as fundamentals move in the other direction than spot price.
The increasing hash rate means that miner optimism remains over profitability for longer periods of time. Their break-even point was found to be around $34,000 according to calculations last week.