bitcoin The Bitcoin network continues to set new records as price action scares investors into larger declines.
Bitcoin mining difficulty set a new record with an increase of 0.5% today.
We see that the Hash Rate rate continues to remain high.
The increase in Bitcoin mining difficulty is related to how difficult it is to settle cryptographic transactions on the network and is a special unit of measure. As the number of miners in the network increases, this ratio also increases depending on the number of miners. The difficulty must increase or decrease to maintain the target block time.
What Will Be the Effect on Bitcoin Price?
BTC There is no close correlation between its price and Bitcoin mining difficulty and hash rate. Increasing network difficulty makes the network more secure and increases competition among miners.
In the bear market between 2017-2018, Bitcoin mining difficulty was constantly breaking records.
When we look at the historical data, the change in the hash rate BTC We see that there is a need for large fluctuations that can activate the algorithms in order to be reflected in the price.
Is the increase due to Russia?
bitcoin It was considered that the miners, whose costs had increased but their incomes had decreased due to the recession in the price and the increase in energy prices, were in a difficult situation and could shut down the machines.
However, it seems that the demand of miners for Bitcoin mining continues.
Meanwhile, an interesting assessment came from popular analyst Willy Woo.
woo, He claimed that the record in Bitcoin mining difficulty originated from miners in Russia.
Given the costs of miners in the US and the pullback in Bitcoin price, it makes sense that this increase in mining difficulty could be due to Russia, which has cheap energy sources. However, we have no evidence for this.
There were some attempts to mine Bitcoin from oil gas in Russia, but then there was no serious news flow. We may see more news feeds on this in the coming days.
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