The Bitcoin network witnessed a historic event on May 12, when network difficulty reached its all-time high of 31.251 billion by the time miners mined nearly 50,000 BTC of the remaining 2 million tokens.
Although the bitcoin community rejoiced at the added resilience to the network due to the increased difficulty of mining a bitcoin block, network difficulty saw a 4.33% drop from 31.251 billion to 29.897 billion on May 26.
As Cointelegraph reported on several occasions, Bitcoin network difficulty consistently hit all-time highs over the last ten monthswhile recovering from a massive 45.4% drop: from 25.046 billion on May 29, 2021, to 13.673 billion on July 22, 2021.
Since then, Bitcoin network difficulty has witnessed a total growth of 128.56% reaching its all-time high. However, despite the momentary decline of more than 4%, the BTC ecosystem is still guarded by the most secure blockchain network.
A Increased network difficulty demands higher computing power to validate and confirm transactions on the BTC blockchain. As a result, this prevents bad actors from taking over the network by contributing more than 50% of the hash rate and carrying out double-spend attacks.
Cointelegraph recently interviewed Dania González, a deputy from 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 and reused the new funds to build infrastructure 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 said.
The Bitcoin (BTC) network snapped its 10-month streak as network difficulty posted a 4.33% dropstanding at 29.897 trillion at the time of writing.
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