Bitcoin network complexity – features and current indicators

Before starting to mine the most sought-after cryptocurrency, most people are not interested in the true complexity of the Bitcoin network. However, this indicator is of great importance for cryptocurrency mining, as it allows you to determine the amount of productive and powerful hardware required to organize the process. Below, we will tell you what it is and what impact it has on the market as a whole.

Network complexity and its purpose

The indicator that is specially programmed and determines the complexity of the 1st unit is called the bitcoin complexity. Such a parameter must be introduced to really limit the new issue of coins. Imagine that the complexity indicator is stagnant, but the initial performance is maintained. What will happen? In this scenario, all coins that are limited to 21 million are instantly “replaced”, which is tantamount to the death of a certain cryptocurrency. The famous businessman Satoshi Namakato, the founder of Bitcoin, introduced certain adjustments and prohibitions to the special bitcoin code to eliminate this problem. Thus, all updated blocks of the chain will be generated with each other about 2-3 times every 30 minutes. Therefore, if the hash of mining devices increases, all blocks independently calculate the complexity to maintain the required time period. It is surprising that after the recalculation is completed, the complexity often decreases and vice versa.

Bitcoin network complexity at the moment

To date, the real complexity of the Bitcoin network is equal to 3,838,316,898,029 H/S and is considered the highest indicator when comparing each of the cryptocurrencies. In order to control the network, you can use specialized sources on the Internet that present specific graphs and algorithms, namely: – BlockChains.info; -BitinfoCharts. Financial experts recommend evaluating several sources at once, as the indicator is very dynamic and can replace its own values, depending on the elapsed time interval. This indicator is of great importance in cryptocurrency mining, because the more it increases, the more powerful and productive the device you need to use for mining. Every day, the complexity of the network is gaining so much momentum that mining one at a time has lost all meaning. For this reason, new miners, according to experts, should quickly choose the right pool and buy equipment with high power.

Restrictions on Bitcoin mining

In order to mine the largest number of coins, all users try to create a high level of security for their own equipment. In addition, most of them use computing power from data centers. But remember that the number of coins should not grow rapidly, as this will cause the reserves of virtual money to run out very quickly. The bitcoin network also organizes the production of no more than 21 million coins. How, then, is it possible to put natural limits on the volume of mining if all users want to maximize their own income? An absolute ban on cryptocurrency mining will definitely lead to the collapse of the overall system. For this reason, restrictions on bitcoin mining are the optimal stabilizing factor for bitcoin computing. If the number of coins you have managed to mine increases rapidly, the mining conditions will change to other ones, making the process much more complicated.

The main factors affecting the complication

There are no specific trends in the change of this indicator. The total financial income of a user can be affected by a large number of different factors, such as: – the cyclical exchange rate; – type of pool; – remuneration for an updated block.

Let us consider the main factors that can affect the complexity of the Bitcoin network:

– The rapid development of innovative technologies and the production of the most powerful, advanced, productive hardware. For the first time, experienced miners faced this problem at the end of 2014. At that time, the market showed its customers a modern novelty in the field of mining – Asic equipment. Its power and hash rate were an order of magnitude higher than those of previous graphics cards. To maintain a natural balance, when this hardware appeared, the system quickly increased its complexity. – Increased demand for Bitcoin. The increase in value has enabled most users to make investments and engage in mining of a particular cryptocurrency. – As the total power of network devices increased, the system’s complexity also increased. – Profitability and payback of cash costs. A sharp jump in the price of bitcoin always appeals to those people who want to achieve long-term capital returns. – Transfer of power and productivity. The vast majority of users are working on mining other cryptocurrencies, but in the end, everyone comes to Bitcoin. And this entails an increase in the total hash and system network capacity. – Additional factors. This subgroup includes public opinion and mood, bad news about equipment hacking and theft, analytical forecasting, and others.

Probable forecast

On this issue, people’s opinions differ greatly and do not coincide at all. Thus, some users think that mining revenue is tied to the growth of bitcoin. Others are afraid of changes in currency values. Ask yourself, what does the network complexity lead to? As a result, the use of even the best computing equipment, which brings high financial capital, may soon lose its relevance. In such a situation, miners have only 2 options: the first is to abandon this type of activity, the second is to mine another cryptocurrency or purchase new advanced equipment with the highest capacity. By the way, professional experts claim that all available coins will be mined by the end of 2140.