Bitcoin Sets New Records for Network Difficulty
In a spectacular display of its strength against potential cyber threats, the Bitcoin network recently smashed its own record for network difficulty not just once, but twice this April. The difficulty skyrocketed from 28.587 trillion to a jaw-dropping 29.794 trillion, making miners reconsider their life choices—like, do I really want to spend hours trying to solve a complex puzzle for a digital currency that fluctuates more than my mood?
What Does Increased Difficulty Mean?
Higher network difficulty isn’t just a fancy number to impress your friends at parties; it essentially means that more computational power is required to successfully mine a Bitcoin block. This increase acts as a safeguard, preventing those pesky bad actors from pulling off nefarious tricks like double-spending. Think of it like security measures at a high-profile gala: if the entry is tougher, fewer gatecrashers will make it in.
The Long and Winding Road of Network Difficulty
From August 1, 2021, the Bitcoin network has been on an almost year-long rollercoaster ride upwards regarding difficulty. In a not-so-distant memory, between May and July 2021, network difficulty took a nosedive of nearly 45.5%, plummeting from 25.046 trillion to 13.673 trillion. At that time, conspiracy theories were rampant—everyone was wondering if Bitcoin was a little too vulnerable for comfort.
Hash Rate Feather in Bitcoin’s Cap
Adding more feathers to Bitcoin’s proverbial cap, on April 28, the hash rate reached an all-time high of 258 EH/s. Picture it like trying to calculate how big a crowd actually is at a concert—somewhere around the end of the month, it eased back down to 220 EH/s, but it didn’t seem to stir any trouble with the network difficulty. Not a single issue! I mean, if only all of life’s problems could resolve themselves that easily.
Transaction Fees Take a Dive
April also had a surprise up its sleeve as we witnessed some of the lowest average transaction fees on the Bitcoin network. On April 18, those fees dipped to just $1.039—talk about a steal! Just two years prior, the fees were soaring at $62.788. Someone slap me with a credit card; this is practically a bargain!
Hodlers: The Stronghold of Bitcoin’s Future
As miners tirelessly chase after the final 2 million BTC into circulation, the future appears bright for Bitcoin—especially considering that hodlers (that tribe of steadfast believers in Bitcoin) are still tailing predictions of new all-time highs. On-chain indicators hint at bullish momentum, primarily due to a noticeable absence of short-term holders. Like a determined marathoner, they’re keeping their eyes on the prize, hoping to see that elusive $100K marker. Our favorite analyst, “Root,” sums it up perfectly: “Many still believe this will eventually happen and might therefore hold on to their coins.” Keep calm and hodl on!
