The hashrate of the Bitcoin network continues to grow, so during the next difficulty recalculation, the indicator increased immediately by 9%. At the same time, the BTC rate reacted with a decrease of 8%.
The recalculation of the difficulty of mining the first cryptocurrency occurs every 2,016 blocks – about once every two weeks. This is the second difficulty recalculation this year, but on January 8, the indicator increased by only 0.41%. The 9.32% increase in difficulty was the largest since August last year.
Mining difficulty has been steadily growing for more than six months. The only decline since last summer occurred in November, and the reason was the ban on mining in China. However, since then, the hash rate of the Bitcoin network has gradually recovered and reached new historical peaks. According to BitInfoCharts, on January 20 it reached 217 EH/s.
The bitcoin rate began to decline quite quickly. Now the first cryptocurrency is trading around $38,500 – the fall reaches 8%. This is due to the possible ban on cryptocurrencies in Russia, as well as the fall of the stock markets – in recent months, the correlation between the bitcoin rate and stock indices is high.
Earlier, the head of MicroStrategy, Michael Saylor, emphasized that bitcoin is the best protection against inflation of fiat currencies.