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50Fish via stocksnap

Bitcoin mining difficulty hits a record as hash rate keeps climbing after the halving

Reward per block halved. Committed computing power did not fall. The economics of that are worth working through.

Bitcoin mining difficulty adjusted upward to a record, following a hash rate that has continued rising despite the block reward halving earlier in the cycle.

That combination is initially counterintuitive. Miner revenue per unit of work halved, and yet more computing power has been committed, not less.

How the difficulty adjustment works

The network targets one block every ten minutes on average. Every 2,016 blocks it measures how long the last set actually took and adjusts difficulty to bring the rate back to target. More hash rate means higher difficulty, which means each individual miner earns proportionally less.

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