U.S. spot bitcoin exchange-traded funds (ETFs) performed well on Wednesday, completing a three-day streak of inflows and accumulating 3 million in gains on May 15. Data indicates Blackrock’s IBIT inflows have been minimal, recording zero inflows over the past few trading sessions. In contrast, Grayscale’s Bitcoin Trust (GBTC) saw inflows of approximately million during […]
Bitcoin News
Bitcoin Closes 2023 With 27 Dynamic Difficulty Adjustments, Netting a 74% Rise in Mining Challenges
Three days ago, on Dec. 23, 2023, Bitcoin marked its 27th and final difficulty adjustment for the year. This year witnessed 27 shifts in epochs, with the most substantial one on Jan. 15 at block 772,128, seeing a surge in network difficulty by 10.26%.
Bitcoin’s Year: 20 Ups, 7 Downs Total 74% Difficulty Surge
By Jan. 4, 2024, it’s anticipated that Bitcoin will undergo another uptick in mining difficulty. This metric, changing every 2,016 blocks or roughly two weeks, maintains the average interval between blocks at approximately 10 minutes. It does so regardless of the fluctuating mining power within the network. This mechanism stabilizes the issuance rate of new bitcoins, enhancing network security by making block discoveries more challenging as the hashrate either increases or decreases.
Throughout 2023, the network experienced a total of 27 difficulty changes, comprising 20 increases and seven decreases. The most notable hike was on Jan. 15, rocketing by 10.26%. Conversely, the smallest uptick was a mere 0.12% on Aug. 9, 2023, at block 802,368. The most significant drop occurred at the outset of the year on Jan. 2, 2023, plummeting by 3.59%, while the slightest decrease was 0.49% on Feb. 12, 2023, at block 776,160.
At the start of the first difficulty change in January 2023, the difficulty stood at 34.09 trillion and wound up escalating to 72.01 trillion by year’s end. This signifies an increase of 37.92 trillion over 12 months, with all rises amounting to a cumulative change of 89.35%. Conversely, all reductions totaled a decrease of 15.34%, cumulatively marking a network augmentation of 74.01% when considering both the increases and decreases combined.
Despite this escalating difficulty, bitcoin (BTC) miners have added an impressive 311 exahash per second (EH/s) of SHA256 hashrate since the start of the year. From Dec. 26, 2022, to Dec. 26, 2023, a total of 54,035 BTC blocks were mined. Foundry USA claimed the lion’s share, mining 16,494 blocks, which accounts for 30.52% of the year’s aggregate block rewards. Antpool secured 12,280 blocks or 22.73% of the total, while the remaining 25,261 blocks were distributed among over 40 other mining pools.
In 2023, Bitcoin’s enduring adaptability and robust network growth underscored its resilience and innovation. As we approach 2024, the community watches anxiously, ready to navigate the challenges and opportunities of increased mining difficulty. This year’s hashrate momentum sets the stage for continued evolution and commitment to securing the network and its pivotal role in the evolving digital economy Satoshi Nakamoto created.
What do you think about all the difficulty adjustments during the course of the year? Share your thoughts and opinions about this subject in the comments section below.
Microstrategy’s Bitcoin Investment Flourishes, Netting $1.6 Billion Profit
Recent statistics reveal that Microstrategy, a company known for its business intelligence, mobile software, and cloud services, has seen a significant increase of over 30% in its bitcoin investments. The company invested a total of .314 billion, with the current value of its bitcoin cache reaching .915 billion, marking a substantial profit of .601 billion.
Microstrategy’s Profits Have Risen by More Than 30% or 40,401 Bitcoin
Microstrategy (Nasdaq: MSTR) has experienced this notable growth following bitcoin’s (BTC) surge past the K mark. Currently, Microstrategy stands as the largest holder of bitcoin, surpassing both public and private entities, with the exception of governments and exchange-traded products such as Grayscale’s GBTC. As of the latest update, the company holds an impressive 174,530 BTC, currently valued at .915 billion based on the prevailing exchange rates.
Microstrategy’s investment in BTC, amounting to .314 billion, was acquired at an average cost of ,252 per BTC. With its current valuation at .915 billion, the company has realized a gain of .601 billion, equating to a 30.12% return through strategic dollar-cost averaging of its purchases. According to archived data from blockchaincenter.net’s “There Is No Second Best,” this analysis tracks Microstrategy’s profit margin with BTC investments, comparing it with potential earnings had the company invested in ethereum (ETH) instead.
Had the company chosen to invest in ETH, its holdings would amount to 4,264,829 ETH, valued at .245 billion. This scenario would have yielded a 74% profit, totaling .931 billion, far surpassing the 30% gain from BTC holdings. Moreover, this figure does not account for additional earnings from staking the ETH, which at a 4% annual percentage yield (APY), could have contributed another 9.4 million to Microstrategy’s profits, blockchaincenter.net’s chart shows.
In such a case, Microstrategy’s total valuation with ETH, including USD gains and staking benefits, would stand at an impressive .114 billion. However, this remains a hypothetical scenario, as Microstrategy and its CEO Michael Saylor are firm believers in bitcoin, with Saylor famously stating, “There is no second best crypto asset.” When it comes to holding size, Microstrategy’s BTC assets represent 27.92% of Grayscale’s Bitcoin Trust’s holdings, showcasing the substantial amount of bitcoin in their portfolio compared to any private or public business.
Microstrategy’s stock performance has been sizable, with MSTR shares increasing by 167% over the past year. Since the beginning of the year, MSTR has seen a gain of 262%, and in the last month alone, shares have risen by 22%. When examining the top assets by market valuation, which encompasses exchange-traded funds (ETFs), cryptos, and precious metals, Microstrategy’s market capitalization ranks as the 1,768th largest globally. Concurrently, bitcoin boasts the 11th highest market valuation worldwide, positioned just below Warren Buffet’s Berkshire Hathaway.
What do you think about Microstrategy’s bitcoin holdings and the gains recorded so far? Share your thoughts and opinions about this subject in the comments section below.