#CFTCCryptoSprint

Mining difficulty reaches an unprecedented peak that reinforces the programmed scarcity of BTC and tests the network's profitability.

The mining difficulty of the Bitcoin network has reached a historic milestone of 127.6 trillion, its highest level to date. However, projections indicate that this indicator will experience a slight decrease. A drop of approximately 3% is expected, which would place the difficulty at 123.7 trillion during the next scheduled adjustment on August 9.

This adjustment mechanism is fundamental to the health of the network. Currently, the average time to mine a block is 10 minutes and 20 seconds, slightly above the ideal target of 10 minutes. Although the long-term trend is upward, difficulty is not static; for example, a decrease was observed in June, reaching its lowest point in July at 116.9 trillion, before resuming its ascent.

The importance of this system lies in its connection to the "Stock-to-Flow" (S2F) model, which measures the scarcity of an asset. Bitcoin has an S2F ratio of approximately 120, making it theoretically twice as scarce as gold, which has a ratio of 60. This programmed scarcity is possible because nearly 94% of the total supply of 21 million BTC has already been mined. In contrast, gold does not have a fixed maximum supply, and its production generates an annual inflation of approximately 2%.

Bitcoin's difficulty adjustment ensures that the production of new coins is inelastic, meaning it does not accelerate uncontrollably even if the computational power (hash rate) of the network increases. If more miners join, the difficulty increases to maintain a stable block production rate, close to the target of 10 minutes. Conversely, if miners disconnect, the difficulty decreases to ensure that the network continues to operate predictably.

$BTC

This balance is what protects Bitcoin from overproduction and associated price declines, solidifying its value proposition as a scarce digital asset resistant to inflation.