In today's digital currency boom, Bitcoin has always been one of the most watched focuses. In the operation and development of Bitcoin, computing power has always been a controversial topic. Is Bitcoin's computing power high or low? Let's explore this issue in depth.

Bitcoin's computing power has always been an important basis for its network security and transaction confirmation. Due to the decentralized nature of Bitcoin, its network requires sufficient computing power to ensure the security and reliability of transactions. Therefore, the level of Bitcoin's computing power is directly related to the operating efficiency and security of the entire network.

From a technical point of view, Bitcoin's computing power is relatively high. The Bitcoin network confirms transactions and adds new blocks to the blockchain through the process of "mining". Mining requires a lot of computing power to solve complex mathematical problems, and miners who receive block rewards are often mining pools or miners with a lot of computing power. This concentrated computing power makes the overall computing power level of the Bitcoin network relatively high, thereby ensuring the security and stability of the network.

However, although Bitcoin's computing power is in a leading position in the entire blockchain field, it also faces some challenges and criticisms. Some people believe that Bitcoin's high computing power leads to excessive energy consumption, especially as the price of Bitcoin rises, mining becomes more and more attractive, exacerbating the problem of energy consumption.

On the other hand, some people believe that Bitcoin's high computing power is a manifestation of its decentralization and security. Compared with other digital currencies, Bitcoin's higher computing power means that attackers need to pay a higher cost to launch malicious attacks on the network, thereby ensuring the security of users' assets and the reliability of transactions.

In general, the computing power of Bitcoin is not a simple issue. It involves factors such as technology, economy, and environment. While discussing the computing power of Bitcoin, we also need to pay attention to how to balance security, sustainability, and efficiency to promote the sustainable development of Bitcoin and the entire blockchain industry.

In the future, with the continuous advancement of technology and the deepening of society's understanding of digital currency, the problem of Bitcoin's computing power will also receive more attention and be solved. Only with the joint efforts of technology, society, and the environment can Bitcoin truly play its role and bring more possibilities and opportunities to our financial system. The computing power of Bitcoin is just the beginning. Let us wait and see and witness the future development of Bitcoin and blockchain technology.

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According to blockchain data, the Bitcoin network ushered in a difficulty adjustment at block height 651168. The mining difficulty was reduced by 0.09% to 19.30T, and the total network computing power increased by 0.64% to 137.85EH/S. Therefore, there are still many investors who choose to mine to obtain Bitcoin. For investors who have just entered the mining circle, they don’t know whether the total network computing power is high or low. So, is the total Bitcoin computing power high or low? The following editor of the currency circle will give you an in-depth analysis of whether the total Bitcoin computing power is high or low?

 Is the total Bitcoin computing power high or low?

As we all know, the higher the total Bitcoin computing power, the higher the mining difficulty, and the lower the total Bitcoin computing power, the lower the mining difficulty. Therefore, for miners, it is better to have a low total Bitcoin computing power.

Mining difficulty, that is, the difficulty of generating new transaction blocks. The total network computing power, also known as the hash rate, is a unit of measurement for the processing power of the Bitcoin network. There has always been a view in the industry that the change in computing power has an important reference value for the trend of Bitcoin, and it can be said that computing power is a leading indicator of Bitcoin prices.

In terms of the price of the currency, some people believe that the increase in computing power indicates that the price of the currency has also begun to show signs of starting, but the price of the currency has been fluctuating and has its own cycle, which is difficult to be affected by computing power. More people hold the view that computing power is more affected by the price of the currency. The higher the price of the currency, the more mining machines can be carried, which is relatively reasonable.

 What impact will the computing power of the entire Bitcoin network have on the price?

1. Mining difficulty and mining growth rate change curve

As explained in the previous article, the mining difficulty cycle is about 12 days. In order to more intuitively see the growth and change of mining difficulty, we set up 3 time dimensions from small to large to observe: 12 days, 24 days, and 120 days. The smoothest curve is the 120-day time dimension, and it can be seen that the rate of change of mining difficulty growth will decrease at different stages. The shrinking distance between the three curves means that the average mining difficulty at different times is approaching, that is, in a certain period of time, the average mining difficulty of 12 days and 120 days is similar, which means that the mining difficulty change rate is decreasing.

Some people believe that when the mining difficulty is significantly reduced, it means that many small miners cannot cover the cost by selling BTC in the previous period and are forced to shut down the mining machines. At this time, large miners have more mining advantages, which is conducive to them to raise the price and then ship.

In order to verify the correctness of the above view, Feixiaohao compared the mining difficulty change curve with the BTC spot price.

2. Comparison of BTC price changes and mining difficulty trend changes

In order to make the data more objective and accurate, we still compare the mining difficulty change curves of 12 days, 24 days and 120 days with the BTC spot price one by one, and found that there is no obvious correlation between the two. The price of Bitcoin does not necessarily rise with the increase in mining difficulty, and sometimes it will fall.

Even after logarithmization, there is still not much correlation.

Therefore, through data comparison, we concluded that the fluctuation trend of BTC spot price cannot be predicted from the decrease or increase of BTC mining difficulty.

The logic behind it is also easy to speculate. When the computing power of the entire network increases, the mining electricity cost within the unit will increase. When the price of the currency falls, miners can choose to shut down the mining machine to avoid more losses. The computing power of the entire network will begin to decline again. Miners who have not shut down have an advantage, the block rate will increase, and the difficulty will be adjusted... At this time, the adjustment of the mining difficulty cycle must have a certain lag.

In addition, miners do not necessarily need to sell the mined BTC to maintain the operation of the mine. Miners can also hold spot through financial instruments and short futures to lock in the price of Bitcoin produced by mining in advance. The fluctuation of the currency price will actually have little impact on the mining profit margin. It can be cashed out when the price rises in the future. Miners don’t have to worry about short-term fluctuations in Bitcoin prices.

From our statistical mining difficulty data, the difficulty of BTC mining is currently soaring, with an increase of 102.93% in the past year. Will it still have a certain impact on the price of BTC in the long run?

There is another interesting data. According to the statistics of f2pool, the price trend of BTC and the computing power of the entire network have shown a clear negative correlation. That is to say, when the computing power of the entire network continues to decrease, the price of BTC is quietly climbing. If the computing power of the entire network drops further, does it mean that more miners will shut down? And is this the best time for large miners to ship their own goods after raising the price?

Through the above introduction, I believe that everyone has already understood the question of whether the computing power of the entire Bitcoin network is high or low. The editor of the coin circle reminds you that if you cannot bear the consequences of personal mining, you can choose cloud computing power to mine coins. Simply put, it is cloud mining. Cloud mining only needs to purchase computing power generated in a remote data center for remote mining. There is no need to purchase equipment. This is mining in the new era. If you want to know more about related knowledge, you can pay attention to the coin circle. The editor of the coin circle will continue to update related reports later!