The bitcoin (Btc) Mining difficulty struck a full time high of 127.6 trillion this week, but is expected to be lowered to the next adjustment of poverty on August 9.
Mining difficulty is expected to fall for about 3% to 123.7 trillion over the next adjustment period, and the current average block time is about 10 minutes and 20 seconds, according to Coinwarz.
The data from the cryptoquant shows that the Mining difficulty fell in Junewith a sharp drop-off at the end of the month and the first two weeks of July, when the poverty fell to 116.9 trillion. However, the level of difficulty continued with the long-term uprising in the late half of July.
Bitcoin mining difficulty, and network hashrate – the total power of computing dedicated to network selection – is centered on the miner’s profitability and maintenance of high bitcoin stock-to-flow ratiothat protects the price of BTC from excessive productivity.
Related: Solo Bitcoin Miner earned $ 373,000 block reward
The difficulty in repairing bitcoin and the stock-to-flow ratio
Stock-to-flow ratio measures the total available supply of a financial property or commodity against the newly created supply added by miners or commodity manufacturers.
The higher the ratio, the more resilient the property or goods are the price changes caused by excessive production; The lower ratio, the more property or goods will be affected by the new supply.
This ratio is partly why silver is that gold demonic. Silver has a lower stock-to-flow ratio than gold. Increasing silver prices attract miners and producers to create more supplies, flooding the market with new silver and depressed prices.
Bitcoin has a higher stock-to-flow ratio than gold, with almost 94% of BTC’s 21 million supply supply Already migrated and circulating -switch to markets. Gold, in comparison, has no hard supply cap and an inflation rate of almost 2% per year.
“The lack of gold, the stock-to-flow ratio, is about 60. Bitcoin deficiency is about 120. Thus, Bitcoin is 2x scarcer than gold,” according to PlanbThe creator of the Bitcoin’s stock-to-flow stock-to-flow price assessment model.
The adjustment difficulty makes the price of bitcoin inadvertently manufactured, which is kept proportional to the total power of computing that miners deployed.
Poverty regulates excessive productivity and subsequent price collapse due to the new supply thrown into the market in large quantities for a short time.
As more computing strength has been deployed to secure the Bitcoin network, difficulty is rising to match new computing sources, keeping the block making as close to a 10-minute target protocol as much as possible.
Conversely, if the power of computing decreases, the network difficulty regulates to ensure that new blocks are mined at a steady pace of about 10 minutes.
Magazine: Bitcoin vs. computer volume threat: timeline and solution (2025–2035)
