Bitcoin Concludes 2023 with 27 Difficulty Adjustments, Resulting in a 74% Increase in Mining Difficulty

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As of December 23, 2023, Bitcoin completed its 27th and final difficulty adjustment of the year, marking a notable year in terms of network adjustments. The most significant adjustment occurred on January 15 at block 772,128, where the network difficulty escalated by 10.26%.

Bitcoin’s 2023: Predominantly Rising Difficulties Culminating in a 74% Increase

Looking ahead to January 4, 2024, another increase in Bitcoin mining difficulty is expected. This measure, which adjusts every 2,016 blocks or approximately every two weeks, aims to keep the time between block creations around 10 minutes. This regulation is crucial for balancing new bitcoin issuance and network security, adapting to the varying levels of mining power.

A Review of Bitcoin Difficulty in 2023

The year 2023 was characterized by 27 difficulty adjustments for Bitcoin, including 20 increases and seven decreases. The most considerable increase, recorded on January 15, was 10.26%, while the smallest was a mere 0.12% on August 9, 2023, at block 802,368. The largest decrease in difficulty occurred at the beginning of the year, on January 2, 2023, with a 3.59% drop. The most minor decrease was noted on February 12, 2023, at block 776,160, with a 0.49% reduction.

From the beginning of 2023, the difficulty level rose from 34.09 trillion to 72.01 trillion by the end of the year, an increase of 37.92 trillion over the 12 months. This represents an overall increase of 89.35% for all the increases combined, while the decreases accounted for a cumulative 15.34% reduction, resulting in a net increase of 74.01% in network difficulty.

Despite the increasing difficulty levels, Bitcoin miners have added a remarkable 311 exahash per second (EH/s) to the network’s SHA256 hashrate since the year’s start. From December 26, 2022, to December 26, 2023, a total of 54,035 BTC blocks were mined. Foundry USA led the pack, mining 16,494 blocks, or 30.52% of the total, followed by Antpool with 12,280 blocks, representing 22.73%. The remaining 25,261 blocks were shared among over 40 other mining pools.

The year 2023 showcased Bitcoin’s resilience and its network’s continuous growth and adaptability. As 2024 approaches, the Bitcoin community remains vigilant and prepared to face the impending challenges and opportunities associated with higher mining difficulties. The momentum of the past year’s hashrate signals ongoing evolution and commitment to securing the network, reaffirming its essential role in the digital economy envisioned by Satoshi Nakamoto.

We invite your insights and perspectives on the numerous difficulty adjustments Bitcoin experienced this past year. Please share your views and thoughts on this topic in the comments section below.

Frequently Asked Questions (FAQs) about Bitcoin Difficulty Adjustments

More about Bitcoin Difficulty Adjustments

• Bitcoin Network Statistics
• 2023 Bitcoin Mining Overview
• Bitcoin Difficulty Adjustment Explained
• Foundry USA Mining Performance
• Bitcoin’s Role in Digital Economy