Bitcoin difficulty in the last few days has been on constant increase, and after proper evaluation, it has been revealed that the difficulty of the leading cryptocurrency will reached an all-time high value of about 15 trillion.
As estimated by CoinMetrics, a crypto market research platform, Bitcoin’s difficulty has been increasing by 8% consistently. The research platform furthered that in the next 4 days, Bitcoin difficulty will be reaching an all-time value of ~15,000,000,000,000.
CoinMetrics said the increase in difficulty is caused by the high level of Bitcoin’s hash rate which has been maintaining all-time high levels since the beginning of the year 2020.
“CM estimates have Bitcoin’s Difficulty increasing by ~8% in 4 days’ time to reach a new ATH at ~15,000,000,000,000. This is due to the implied hash rate of Bitcoin maintaining ATH levels since Jan 1.”
CM estimates have Bitcoin's Difficulty increasing by ~8% in 4 days time to reach a new ATH at ~15,000,000,000,000
This is due to the implied hash rate of Bitcoin maintaining ATH levels since Jan 1 pic.twitter.com/MfLOKTJNiK
— CoinMetrics.io (@coinmetrics) January 10, 2020
According to a graph illustrated by the research firm, Bitcoin’s hash rate has been above 100,000,000 since January 1.
While the hash rate continues to maintain a high value, the difficulty of Bitcoin on January 2, surged from 50,000,000 to around 85,000,000.
What 5 Trillion Difficulty Means for Bitcoin Price
Bitcoin Difficulty is a measure that helps to show how difficult or complex it is for equations miners to solve and add new blocks of transactions to Bitcoin blockchain. The difficulty updates after every two weeks to ensure that blocks are added at regular intervals even if more miners join the network.
In an update shared by popular analyst PlanB, Bitcoin price rally up at the difficult bottom. The analyst revealed that since the creation of Bitcoin, there have been several difficulty cycles, and for every price rising, a trend of magnitude less relative to the last difficulty low is seen.
PlanB, in the above illustration, noted that in late 2013 when the price of Bitcoin rose to $1,300, an increase of 50,000% was seen in difficulty compared to the last difficulty low. Similarly, 9,000% rise was recorded when Bitcoin price surged to $20,000.
The model further indicated that the next difficulty peak will also be lower, conjecturing a 1,000% rise and a possible market price of $31,000 for Bitcoin this 2020.