Connect with us

Bitcoin

Bitcoin [BTC] mining difficulty increases by 4.25%; Ethereum [ETH] mining difficulty up by 20%

Avatar

Published

on

Bitcoin [BTC] mining difficulty increases by 4.25%; Ethereum [ETH] mining difficulty up by 20%
Source: Unsplash

Bitcoin’s mining difficulty has increased by approximately 4.25% while that of Ethereum’s increased by approximately 20% in a single day.

Bitcoin

Bitcoin mining difficulty is a way to prevent mining of too many BTCs too fast. So, as the number of miners increase, the mining difficulty increase as well. As per the data obtained from Bitcoinwisdom, the current difficulty of Bitcoin is at 6,061,518,831,027, the block generation time for one block is at 9.5 minutes.

The current hash rate for Bitcoin is at 43.795 million Gh/s [Gigahash per second]. The chart below shows the relationship between mining difficult and hash rate.

Bitcoinwisdom.com

Furthermore, the block halving for Bitcoin is in a year, i.e., on May 24, 2020, at 15:32:46. On that exact time, Bitcoin’s block rewards for all the miners would decrease from 12.5 BTC to 6.25 BTC.

Block halving for Bitcoin happens once every 210,000 blocks are mined on the Bitcoin blockchain.

Ethereum

Ethereum, the second largest cryptocurrency in the world by market cap [at the time of writing] has also seen a drastic increase in difficulty level in recent days.

Ethereum’s current difficulty [at the time of writing] was at 2,816,912,243,698,462. The chart below shows how ETH’s difficulty has varied over the 24-hour time frame.

CoinWarz.com

Ethereum’s difficulty has increased by over 20% in a matter of seven days. However, the difficulty of ETH has increased by approximately 20% from 10 – 11 February.

More recent effects of the increase in difficulty of Ethereum’s mining was seen during the launch of Ethereum’s update, Constantinople. One of the reasons why the Constantinople update was postponed was due to an excessive and abnormal increase in mining difficulty.

A Redditor, u/jps commented:

“difficulty bomb creates a different equilibrium point because it is now adding about 1/2500 every block, and the adjust is in units of 1/1024, so there is a meaningful increase in difficulty, which needs to be offset by a meaningful number of blocks getting solved >18 seconds.
This basically means that difficulty will increase until average block solve time is just over 20 seconds.”

Another Redditor, u/cuongnq commented:

“Diffbomb is set to increase every 100k block. So we just passed 7200000. Block time increase to 20 seconds too. If hard fork not work in 7280000 we will see one or more of this shit.”





Subscribe to AMBCrypto’s Newsletter




Follow us on Telegram | Twitter | Facebook



Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.

Bitcoin

Is the scarcity principle a factor in Bitcoin’s valuation or is it just crypto white noise?

Biraajmaan Tamuly

Published

on

Is Bitcoin being scarce changes the way we put forward its valuation or is it just Crypto white noise?
Source: Pixabay

The aspect of scarcity is fundamental to the Bitcoin community, with its limited availability often seen as a virtue in a world where governments have unlimited power to print fiat currencies. With the value of Bitcoin increasing day by day, the virtual asset is getting close to its saturation point.

At press time, 17,763,712 BTC were in supply, very close to the 21 million Bitcoin supply cap. However, the last BTC will be minted on 7th May 2140. That is almost 100 years from now. So, there is still a significant period of time before Bitcoin’s production halts for good.

Many in the community have suggested that Bitcoin’s scarcity has genuine value because it makes the virtual asset “deflationary.” In light of Facebook’s announcement of “Libra” coin, it has been argued that it will not generate any circumstantial threat to Bitcoin, solely on the fact that Bitcoin was scarce and Libra was not.

A recent Medium article released by Forbes summed up the scenario. It stated,

“It will take time, but Facebook will greatly accelerate the pace of teaching people about cryptocurrencies. And when this happens, more people will turn to bitcoin for one simple reason — bitcoin is scarce, while Facebook’s cryptocurrency is not.”

Another aspect that explains the importance of Bitcoin’s scarcity value is its comparison with Gold, which is also a scarce commodity. A key model that explains Gold’s intrinsic value in the market is the Stock to Flow ratio.

The S2F ratio of a commodity explains the scarcity value as it is the amount of an asset that is available to the amount that is produced annually. Moreover, the higher the S2F value of an asset, the lesser the inflation rate attached to it. At press time, Gold had the highest S2F value, but Bitcoin was close behind and it was stated that by August 2020, Bitcoins S2F’s value would be 55.2 to Gold’s 62.

However, a significant counter-argument against Bitcoin’s scarcity in the community was put forth, with none other than legendary investor, Warren Buffet, claiming that Bitcoin had no “intrinsic value.”

Recently, Peter Schiff, CEO at Euro Pacific Capital, explained that Bitcoin was not scarce due to the availability of other crypto-assets which made Bitcoin’s scarce value quite redundant since crypto assets, with better properties and characteristics, could be created anytime.

The argument was widely opposed by a majority of the community, with certain crypto-enthusiasts deciding to respond to the post. Twitter user, @Sisko8, said,

“The Mona Lisa is not really scarce, as there is an infinite supply of other paintings with identical or superior painting techniques that can be created out of 3$ paint and canvas, including photocopies of the Mona Lisa.”





Subscribe to AMBCrypto’s Newsletter


Continue Reading

Trending