The ebb in the cryptocurrency market continues to cause problems for investors and related companies. Despite this, the Bitcoin mining industry's momentum is holding up and this Sunday it set a new all-time high. This makes it clear that the big companies in the sector have full confidence in the future.
As reflected by Cloverpool data, the network complexity for processing transaction blocks reached 109.78 T (trillion). This is the first time in the history of the BTC blockchain that these levels of security have been reached. The agglomeration of miners competing to validate valid blocks becomes one of the guarantees of the potential of the mining business.
A key aspect of this is that this is the sixth consecutive ATH of the network since last October 22. Difficulty adjustments to the Bitcoin network occur every 2,016 blocks, which is roughly equivalent to two weeks. These changes are aimed at maintaining a stable time as close to 10 minutes for each block processed.
Difficulty adjustments ensure a stable issuance of BTC over time, which allows for the continuity of Bitcoin mining. With supply controlled with these adjustments, the flow of liquidity allows for predictable deflationary behavior. Ultimately, this ensures that the currency has a permanent appreciation of its exchange value.
Some companies accelerated the connection of new equipment in the last quarter of the year. In this way, they intend to comply with their production plans and stimulate the flow of investment capital. Hence, many of these companies accelerated the pace of connections.
A second motivation for the massive connection of new mining equipment was the rising price of Bitcoin. This allowed the profits from mining BTC to grow significantly. In that sense, some teams that were disconnected for being unproductive under bearish conditions, started to return to the network.
The result is that the network hashrate (computing power of globally connected ASICs) increased significantly. This directly leads to the difficulty of Bitcoin mining going up as a direct consequence.
The next automatic adjustment of the network complexity will occur within approximately 13 days. The year-end pause in business activities could lead to a setback in the difficulty. According to the aforementioned portal, this drop will be just 0.13% which would leave the indicator at 109.64 T, i.e. the second highest in history.
With this increase in activity, as mentioned above, Bitcoin mining shows that it remains a promising business. The large companies in this industry maintain a gigantic confidence in the future of the BTC price, which drives them to redouble their bets in terms of expansion.
Source: Alejandro Gil / Cryptotrend.
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