Network difficulties for bitcoin mining rose to a new height last year.
Confirming its position as the most resilient blockchain network to attacks, the Bitcoin network recorded a new all-time high network difficulty in April for the second time this month, jumping to 29.794 trillion from its previous all-time high of 28.587 trillion.
What is network difficulty?
Difficulty is a measure of how difficult it is to mine a block of Bitcoin, or in more technical terms, find a hash below a specific target. High network difficulty means that more processing power is required to mine the same number of blocks, making the network more secure against attacks.
Major network difficulties require greater computing power to successfully mine a Bitcoin (BTC) block, preventing bad actors from taking over the network and manipulating transactions, also known as double spending. As Blockchain.com data shows, since August 1, 2021, Bitcoin’s network difficulty has seen a nearly year-long uptrend. Before that, between May and July 2021, there was a period when the BTC network difficulty dropped by almost 45.5% from 25.046 trillion to 13.673 trillion – raising concerns about the vulnerability of the network at the time.
How do things escalate?
To further solidify Bitcoin’s resilience against 51% attacks, the Bitcoin network hash rate also recorded a new ATH of 258 EH/s on April 28. As shown below, the network hash rate dropped to the 220 EH/s mark by the end of the month with no visible negative impact on the BTC network difficulties. The month of April also witnessed one of the lowest average transaction fees on the Bitcoin network, the costs associated with transferring BTC. For the first time in two years, the average BTC transaction fee fell to $1.039 on April 18, from a high of $62.788 in April 2021. As bitcoin miners continue to circulate the last 2 million BTC, the network is well positioned to set a new all-time high in terms of overall security and price.
New research paints a bullish picture for BTC and underscores the strength of holders hoping for all-time highs. As Cointelegraph reported, on-chain indicators are pointing to bullish momentum thanks to a dearth of short-term holders (STHs), as noted by popular analyst Root:
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