Difficulty is a reflection of both miner competition and Bitcoin network security, and its upward trajectory suggests that miners are not yet struggling when it comes to profitability. The next automated readjustment is already due to continue the trend, taking difficulty over 56 trillion for the first time.
Bitcoin network fundamentals overview (screenshot). Source: BTC.com
Hash rate shows “high confidence” in BTC: A similar story concerns hash rate — the estimated hashing deployment by miners to the Bitcoin blockchain. While not possible to calculate exactly, depending on the source, hash rate is already challenging existing all-time highs of over 400 exahashes per second (EH/s).
Bitcoin estimated hash rate chart. Source: Glassnode
Separate data from on-chain analytics firm Glassnode shows little tangible change in the amount of BTC held by mining entities. This stood at just over 1.83 million BTC as of Aug. 22, up by a steady 0.08% since the start of the month.
Bitcoin miner BTC balance chart. Source: Glassnode
What do you think of this?
I’ll say it:
​
This is good for bitcoin.