It's a metric that many Bitcoin investors don't know or care about. But they should, despite the price of the largest and oldest cryptocurrency He took a hit Earlier today, Monday.

BitcoinMining difficulty has risen again, reaching a new high. Data from CoinWarz He appears Difficulty reached a new all-time high of 110.45 trillion on Sunday. This means that it is more difficult than ever to mine a new block.

In the world of Bitcoin, mining operations spread around the world — typically large warehouses filled with specialized computers — race to solve mathematical problems. The fastest in solving problems with the transactions that make up the blocks.

The blocks are then added to Bitcoin's transaction ledger, and miners are rewarded for their speed with newly minted digital coins. It is measured by something called Retail- It is basically just converting data into a fixed-length string of letters and numbers.

It is a complex and expensive process, requiring a lot of equipment and energy. But the potential reward could be really big, with 3,125 bitcoins, or roughly $295,000 at the current price, being awarded for successfully winning the block.

As the difficulty of mining new blocks increases to new highs, Bitcoin users should be happy: it means the network is stronger and more secure than ever before.

The largest cryptocurrency by market cap reached a new high in December at more than $108,000 per coin. Since then, fears that the US central bank may be slow to cut interest rates have subsided. Cryptocurrencies – like stocks – tend to perform well in low interest rate environments.

Bitcoin is currently priced at more than $94,170, according to CoinGecko data He appearsrising after a brief decline below the $90,000 level early Monday.

Modified by Andrew Hayward