Thursday, December 8, 2022

Bitcoin Mining Difficulty Records Biggest Leap In 17 Months, Hits New All-Time High

The latest data reports from BTC.com suggests that Bitcoin (BTC) mining difficulty is up a massive 13.5% from its last recorded measure. Two weeks ago, the figure was still at 32.05 trillion hashes. Per the report, however, it now requires 35.6 trillion hashes to mine a single BTC. The jump, which is the biggest leap in over 17 months also represents the fifth consecutive spike in a row.

Blockchain.com also confirms that the current network hash rate is 257 million terra hashes per second (TH/s). This represents a whopping 45% rise from 140 million TH/s in just a year.

Mining Difficulty Raises Fears Amongst Crypto Miners

At the moment, it appears things are going from bad to worse for crypto miners, even as they struggle to stay profitable. They first have to deal with the BTC price whose price has been nothing to write home about recently. Inflation levels are also on a rise, per Fed’s recent report. That is not to mention the high energy costs that are also prevalent. Now that mining difficulty is also at a new ATH, profiting from Bitcoin mining has become an almost impossible task.

The reality of the situation on the ground is evident in the recent moves of notable miners. Within a week, miner Compute North filed for bankruptcy, while Argo Blockchain (ARBK) had to raise an impromptu $27 million to ease liquidity concerns.

Speaking about the impossible condition being faced by miners, Argo Blockchain CEO, Peter Wall said:

“Our profitability has been squeezed from both sides from higher energy prices to lower bitcoin price, that’s resulted in a cash crunch for Argo.”

It remains unclear, however, whether all miners are affected the same. As Fred Thiel, CEO of Nasdaq-listed bitcoin miner Marathon Digital Holdings said last week, the situation may benefit some miners. Nonetheless, it is certainly not a good time for miners on average.

As of publication, Bitcoin price continues trading around the $19,000 range, per CoinMarketCap data and is down 5% in a week.

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