Bitcoin Mining Difficulty Reaches All-Time High as Market Drops

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* The bitcoin mining difficulty has reached an all-time high of 31.25 trillion hashes.

* The difficulty occurred at block 735840.

* Mining difficulty is a way to measure the problem of finding the hash of a block of transactions on the bitcoin blockchain.

* Bitcoin has been showing a close correlation with tech stocks recently, dropping to $29,000 briefly on Monday before rebounding to $31,134.79.

* According to Bloomberg, every downtrend in bitcoin prices since 2014 has ended with it reaching its 200-day moving average price, which, at this stage, could see it touching the $20,000 mark.

* Revenue per day coming from guessing the correct block hash and transaction fees has dropped from $32.28 million on Tuesday to $30.47 million today and could drop even further should bitcoin approach the $20,000 mark.

* Coupled with the spike in mining difficulty, many miners could find themselves in an unprofitable space, and choose to close up shop, potentially leaving tens of thousands of dollars worth of equipment unused until the difficulty decreases.

* Mining difficulty is calculated approximately every 2,016 blocks or roughly every two weeks.

* If there was no dynamic adjustment of difficulty, as more miners join the network with increasingly powerful computers, the time to solve a block could be dramatically reduced, resulting in more coins being rewarded to miners in a short space of time, devaluing bitcoin.

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Bitcoin Mining Difficulty Reaches All-Time High as Market Drops 2

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