While Bitcoin (BTC) news is primarily about bullish movements in the price of the asset, there is another important piece of information worth noting. Indeed, mining difficulty increased by 8.9% on the network with a hash rate yet at 130 EH / s. This is all the more important as it is only 4.4% below its record which was set last October. A situation which is not without having direct consequences on the functioning of the network.
The increase in transaction fees
Historically, an increase in the difficulty of bitcoin mining heralded a bullish cycle for the asset. This had already been observed, in particular in 2013 and 2016, and suggests a repetition of the scenario at the end of the year. However, recent price movements which drove assets below $ 17,000 before recovering to over $ 18,000 suggests otherwise. However, the advent of another direct and more obvious consequence is possible in the days to come. Indeed, a greater difficulty of mining can induce an increase in transaction costs on the network.
It is the same for the time required to generate a block, but also number of untapped transactions in Bitcoin’s mempool. Currently, Earn.com estimated at 14,272 satoshis, or around $ 2.60 the optimal transaction fees for bitcoin on the network. For its part, the hash rate had already fallen by more than 27%, from 146.5 EH / s to 106.6 EH / s between October 17 and November 2. Although it is currently around 130.15 pe / s according to BTC.com this computing power proves the low level of mining activity on the network.
A similar situation observed on the Ethereum network
Another asset that has also seen bullish movements in recent weeks, ETH has also set records on its network. For the first time in two years, Ethereum mining difficulties were also at their highest levels. As with bitcoin, this was accompanied by a depreciation of market assets before resuming an uptrend.
Despite the difficulties currently faced by miners, the asset value has once again crossed the $ 19,000 mark. It remains to be seen whether she will complete her ascension and finally reach her ATH before the end of the year.