• Sat. May 21st, 2022

Bitcoin’s ‘Network Difficulty’ Will Mean the Death of Crypto in 2022

ByHazel R. Lang

May 3, 2022

Network difficulty for Bitcoin mining has reached a new high over the past year.

Reassuring its position as the most attack-resistant blockchain network, the Bitcoin network recorded a new record network difficulty for the second time this month in April, dropping from its previous all-time high of 28.587 trillion to 29.794 trillion.

What is a network difficulty?

Difficulty is a measure of how difficult it is to mine a Bitcoin block, or in more technical terms, to find a hash below a given target. A high network difficulty means that it will take more computing power to mine the same number of blocks, which makes the network more secure against attacks.

Greater network difficulty requires greater computing power to successfully mine a Bitcoin (BTC) block, which prevents bad actors from taking over the network and manipulating transactions, also known as double-spending. As evidenced by data from Blockchain.com, Bitcoin network difficulty has been on a nearly year-long uptrend since August 1, 2021. Prior to that, between May and July 2021, was a timeline where BTC network difficulties fell nearly 45.5% from 25,046 trillion to 13.673 trillion – at the time, raising momentary concerns about the network. vulnerability.

How are things getting worse?

Further cementing Bitcoin’s resilience against 51% attacks, on April 28, the Bitcoin network’s hash rate also registered a new ATH of 258 EH/s. As shown below, the network hash rate dipped to the 220 EH/s mark at the end of the month with no visible negative impact on the BTC network difficulty. April also witnessed one of the lowest average transaction fees on the Bitcoin network, the cost associated with transferring BTC. For the first time in two years, on April 18, average BTC transaction fees fell to $1,039, which peaked at $62,788 in April 2021. As Bitcoin miners continue to chase the last 2 million of BTC in circulation, the network is well-positioned to achieve a new all-time high in terms of overall security and price.

New research paints a bullish picture for BTC, highlighting the strength of holders hoping to reach all-time highs. As Cointelegraph reported, on-chain indicators suggest bullish momentum thanks to a lack of short-term (STH) holders, as noted by popular analyst “Root:”

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