On May 12, the difficulty of the Bitcoin network witnessed a historic event, recording a new all-time high of 31.251 billion. Meanwhile, the miners have almost mined 50.000 BTC of the 2 million remaining coins.
While the community rejoiced for the result achieved, two days ago the parameter registered a correction of 4.33%, decreasing from 31,251 to 29,897 billion.
As Cointelegraph reported on several occasions, Bitcoin’s difficulty has consistently surpassed new highs over the past ten months, recovering from a whopping 45.4% drop, from 25,046 on May 29, 2021, to 13,673 billion on July 22, 2021.
Since then, Bitcoin’s difficulty has experienced a total increase of 128.56%, reaching historic peaks. However, despite the momentary decline of more than 4%, the Bitcoin ecosystem is still guaranteed by the rete blockchain safer.
Greater network difficulty requires more computing power to validate and confirm transactions on the Bitcoin blockchain. As a result, this prevents attackers from taking control of the network by acquiring more than 50% of the hash rate in order to attempt double spending attacks.
Related: Bitcoin drop does not affect El Salvador: “Now is the time to buy more,” says MP Dania Gonzalez
Cointelegraph recently interviewed Dania Gonzalez, deputy of the Republic of El Salvador, to better understand the social impact of adopting BTC as legal tender.
According to Gonzalez, El Salvador made profits through strategic investments in BTC, in order to use the capital gains to build various infrastructures, such as a veterinary hospital and a public school.
“What Nayib Bukele did was buy Bitcoin and make a profit at a certain strategic moment”he concluded.
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