The difficulty of mining a block of Bitcoin (BTC) has been reduced by 5% to 27.693 trillion as the network’s difficulty maintains its three-month downward streak since it reached an all-time high of 31.251 trillion in May 2022.
Network difficulty is a method devised by Bitcoin creator Satoshi Nakamoto to ensure the legitimacy of all transactions using raw computing power. The lower difficulty allows Bitcoin miners to confirm transactions using fewer resources, giving small miners a fighting chance to earn mining rewards.
Despite the slight setback, a miniaturization of blockchain.com data reveals that Bitcoin continues to function as the most resilient and stable blockchain network. While the difficulty adjustment is directly proportional to the hash power of the miners, the total hash rate (TH/s) regained 3.2% along similar timelines, as shown below.
At its peak, Bitcoin’s hash rate reached an all-time high of 231,428 Exahs per second (EH/s) when BTC prices plunged to $25,000 last month in June – raising temporary concerns about its energy-intensive use.
Since China banned all cryptocurrency trading and mining in June 2021, the United States has picked up the slack in becoming the largest contributor to the global Bitcoin hash rate. However, Chinese miners resumed operations in September 2021. According to Statista data, the United States accounts for 37.84% of the global hash rate, followed by China with 21.11% and Kazakhstan with 13.22%.
Previously, Cointelegraph reported that the meteoric drop in GPU prices has opened a small window of opportunity for small miners to purchase a piece of more powerful and efficient mining equipment. However, miners are seeing lower GPU prices as a way to offset their operating costs amid an ongoing bear market.
Related Topic: Sustainable Bitcoin Mining Power Mix Reaches 59.5%: BTC Mining Council
To ease concerns about expensive energy use, a report by the Bitcoin Mining Council revealed that nearly 60% of the electricity used for BTC mining comes from sustainable sources.
The study also found that Bitcoin mining accounts for only 0.09% of the 34.8 billion metric tons of carbon emissions estimated to be produced globally and consumes only 0.15% of the global energy supply.