Difficulty of Bitcoin - what is it?

Difficulty of Bitcoin is a regular technical complication of the processes of mining crypto coins by increasing the complexity of computational processes and their number.

The cost of any cryptocurrency, including the first digital coin, Bitcoin, is formed exclusively commercially. However, several geopolitical and economic factors and specific conditions of the cryptocurrency ecosystem are added to this, such as halving and difficulty. The latter concept has a fundamentally significant impact on the value of Bitcoin in a given time period. Compliance with this condition is necessary to stabilize all processes that inevitably arise in generating new coins and their use.

How is Bitcoin's Difficulty changing?

In simple words, the Difficulty of BTC is the level of complexity and the amount of computing power required to generate new coins. According to the generally accepted and initially established algorithm, the difficulty level increases every four years or upon reaching 210 thousand new coins. Moreover, each time, the increase occurs by an average of 33% from the previous difficulty level. With each new difficulty cycle, the cost of Bitcoin increases, and at the same time, miners' reward for the work performed is halved.

The complexity of Bitcoin is needed as a specific constant to prevent increased speculation and leveling of the value of such a digital asset. If the mining difficulty stayed the same, then the time spent on mining each new block would be reduced as new technologies developed. Accordingly, the entire number of coins available for mining would have been mined much earlier than is included in the system. And this would directly affect the relationship between supply and demand.