Bitcoin Mining Difficulty Hits New High in September
The difficulty of mining Bitcoin reached a record high of 142.3 trillion on Friday, highlighting the growing challenge of adding new blocks to the blockchain. This milestone follows consecutive increases in August and September, driven by the rapid deployment of additional computing power.
At the same time, Bitcoin’s hashrate — the combined computing power securing the network — climbed to an unprecedented 1.1 trillion hashes per second, according to CryptoQuant. The rising difficulty and demand for energy-intensive hardware are making it increasingly difficult for both individuals and corporations to compete, fueling concerns that mining activity is becoming more centralized.
Governments and energy firms step in
Competition for mining is no longer limited to private firms. Several governments, including Bhutan, Pakistan, and El Salvador, have entered the sector or are exploring ways to use surplus energy for mining operations. Pakistan, for instance, announced in May that it would dedicate 2,000 megawatts of excess energy to Bitcoin mining as part of a broader strategy to embrace digital assets.
In the United States, energy companies in Texas are incorporating Bitcoin mining into their infrastructure. By collaborating with the Energy Reliability Council of Texas (ERCOT), these firms use mining to balance the power grid: consuming surplus electricity during low-demand periods and shutting down rigs when demand peaks.
Shifting competitive dynamics
This approach gives energy providers a significant advantage, as they can profit from mining without worrying about fluctuating energy costs. Publicly traded mining corporations, by contrast, face higher overheads and tighter margins.
The shift underscores how the mining landscape is evolving, with governments and infrastructure providers increasingly competing with traditional mining businesses for dominance.
Sources:
https://cointelegraph.com/news/bitcoin-mining-difficulty-all-time-high-centralization-fear