Bitcoin has been on a price hike recently, rising steadily since April to reach a year high of over $8,700. In the face of this price hike, the Bitcoin network is also getting increasingly secure as the mining difficulty just reached a new all-time high today 31 May 2019. According to reports, the new mining difficulty was reached after it rose by 11.26% with block 578,592.
Increasing mining activity
Mining difficulty directly points to the amount of mining activity going on on the network. As the number of miners increases, so does the difficulty of mining. This also means that the network is at its highest level of security as there are more miners to verify transactions rather than just a few. It makes it more difficult at this time to reverse a transaction and so the chance of a double spend is almost non-existent.
Bitcoin mining difficulty was at a significantly low level especially in December of 2018 when the price of Bitcoin was at its all-time low since the 2017 bull market. It has however seen a steady rise since then to reach the new ATH of 7.46 from the former ATH of 7.45 T.
The hash rate is also at a significantly high level of ~58 TH/s, a level that is almost at an all-time high. As a result of the increased number of miners, the mempool which was reportedly jammed with unconfirmed transactions has been cleared today as well.
Is Bitcoin mining becoming more profitable?
The year 2018 wasn’t just a painful bear market for Bitcoin but was also a tough one for miners. Miners globally sold mining equipment and resigned because the venture became unprofitable. With the sudden rise in hash rate and difficulty which points to an increasing number of miners, could it be that mining is eventually becoming profitable as the bull market continues to build? If so then there has never been a better time to get into Bitcoin with this combination of profitability and security.