A recent analysis of the top digital asset by market cap Bitcoin (BTC), shows that the token has continued to gradually stabilize its network activity after a return to upward difficulty adjustments was attained following a hash rate reversal from its decline only last month. Mining had become difficult in recent months due to a number of challenges hitting the space. Now it appears there was a reversal in Bitcoin (BTC) mining difficulty.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin (BTC) Continues to Reinforce its Position
According to data collected from statistics resources the Blockchain and Bitcoin Wisdom, Smartereum was able to understand that the Bitcoin (BTC) network’s most recent difficult adjustment was up by 10%, and not down. The difficulty here refers to the rate or ease at which Bitcoin miners can solve equations to validate blocks of transactions within the Bitcoin Blockchain.
According to the report, the period through July 2018 shows a repeated downturn adjustment as the price of Bitcoin (BTC) declined and miners had to lower the costs of mining to avoid mining at a loss. Unprecedented over the last seven years, at least five downward adjustments were observed this year. One was recorded in July, another in October and November while December alone saw two downward adjustments all in 2018.
The largest such shift was seen on December 3, 2018, at 15.1%. As at that time, the Bitcoin price stood at BTC/USD $3822.52 and was coming under massive pressure amid reports that miners were set to abandon the network due to mining profitability concerns. However, Bitcoin (BTC) proponents have largely dismissed associated claims of such that the cryptocurrency is in trouble, with entrepreneur Alistair Milne calling them a “FUD” as he went on to upload the most recent hash rate data of Bitcoin (BTC) to the social media on December 31, 2018.
Bitcoin Maximalists Were Correct
The Bitcoin (BTC) hashrate had been in decline since the month of August 2018, although the reduced difficulty initiated a U-turn by mid-December 2018, for some demonstrating that Bitcoin (BTC) to look after itself in the absence of a central authority. Moving forward, a fewer number of commentators now expect that a significant breakout will occur for the Bitcoin price in the short term. Yet technical robustness has remained a constant and continued to be a reason for celebration.
Lightening Network Hit New Records
The Lightning Network is Bitcoin’s major scaling solution for last year. It managed to hit new records for both capacity and participation in December 2018. As per the report via a blog post this Monday, Bitcoin (BTC) developer Jimmy Song, touched on Bitcoin’s decentralized nature indicating that it is something that will improve set it apart from other digital coins this year. He writes:
“What the past year has shown is what the Bitcoin Maximalists have continuously said all along.”
Bitcoin (BTC) is actually different because it is a decentralized network. The pros of decentralization are typically subtle and straightforward to dismiss but are true benefits. Did the increasing Bitcoin (BTC) hash rate and mining difficulty benefit the network? Only time will tell.