Bitcoin mining difficulty has gone up by 15 percent to 144.4 trillion, the biggest jump since 2021, the year that China banned crypto mining, marking a major shift in the industry.
Mining difficulty shows how hard it is for miners to create a new Bitcoin block. The level is automatically adjusted by the system every 2,016 blocks, which is roughly every two weeks.
The aim is to ensure that new blocks are added to the chain every 10 minutes, whether there are more or fewer miners in the network. If more computing power is added to the network, the level of difficulty increases; if miners leave the network, the level of difficulty decreases.
Bitcoin mining difficulty recently changed after the network first saw a 12 percent drop, mainly because overall mining power which is also known as hashrate, declined.
The rise in mining difficulty comes at a time when a severe winter storm in the United States forced several major mining companies to slow or temporarily shut down operations, causing the biggest disruption since late 2021.
What does the jump mean for miners?
A 15 percent jump in Bitcoin mining difficulty to 144.4 trillion means mining bitcoin has suddenly become much tougher. The network automatically raises difficulty when more miners join or when computing power increases, so blocks are still produced roughly every 10 minutes.
For miners, this means increased competition and increased costs. They will require more powerful equipment and more electricity to receive the same rewards as before.
Small miners or those who pay high prices for electricity may see their profits decrease, but large miners who pay low prices for electricity and have efficient equipment are more prepared for the challenge.
In simple terms, the network has become stronger and more secure, but mining Bitcoin has become less easy and less profitable for many participants.
Bitcoin miners move to AI centres
Earlier, when Bitcoin’s price climbed to around $126,500 in October, mining activity was at its peak, with hashrate reaching 1.1 zettahash per second.
However, as prices later fell to nearly $60,000 in February, mining power also dropped to 826 exahash per second. Since then, both price and hashrate have recovered somewhat, with Bitcoin trading near $67,000 and hashrate returning to about 1 ZH/s.
Even so, miners are earning less because daily mining revenue remains low. Large operators with cheaper electricity continue mining actively, while some companies are shifting resources toward AI data centers instead of Bitcoin mining.