Since October 2022, the Bitcoin mining difficulty has seen its biggest jump ever. This is due to a combination of factors such as increasing demand for Bitcoin, more miners entering the network and improved hardware capabilities.
The difficulty adjustment algorithm used by the Bitcoin network adjusts itself every 2016 blocks (roughly two weeks) in order to maintain an average block time of 10 minutes. The higher the hash rate – or computing power dedicated to solving cryptographic puzzles – increases over time, so does this target number which needs to be reached in order for a miner’s reward transaction fees and newly minted coins from being added into circulation.
In October 2022 alone we saw an increase of over 7%, with some estimates putting it closer 12%. This was driven largely by increased interest from institutional investors who are now beginning to take notice of cryptocurrency markets as well as more miners joining networks around world looking capitalize on these new opportunities provided by digital currencies like bitcoin . Furthermore , improvements made in ASIC chip technology have allowed smaller operations access better hardware solutions at much lower cost than before , further driving up competition within industry .
As result , we are seeing some significant changes happening within blockchain space that could potentially lead us towards even greater heights when comes profitability rewards offered through mining activities . With all said done though it's important remember that volatility remains key factor play when making decision whether invest energy resources into process not - so always do your own research first !
source photo: cryptorank.io