Hash Rate, Miner’s Reward And Difficulty

Hash rate, miner’s reward, and difficulty are interdependent on each other in various ways. Whenever Bitcoin network’s difficulty goes up more hash rate is required to mine/find the blocks and as result miners earn the block reward of 12.5 BTC plus the transaction fees.

Interestingly, the Bitcoin network’s difficulty goes up because of more miners joining the network and thus the hash power needs to be increased (i.e. more computational guesses needs to be made per second to find the solution).

This interesting correlation is enforced in the Bitcoin protocol itself so that the average block time remains 10 minutes.

After reading this, some of you would want to mine bitcoins by providing hash power to the Bitcoin network but that is a very costly and energy-intensive affair which everyone cannot do. It requires you to make expensive hardware investments, pay for huge electricity bills, and demands that you have a good amount of computer knowledge.

And until you are ready to become a miner, keep working hard in your current profession, HODL Bitcoin and stay tuned to CoinSutra to keep learning more about the Bitcoin revolution.