This week, Bitcoin mining difficulty achieved an all-time high of 127.6 trillion but is expected to decrease by approximately 3% to 123.7 trillion during the upcoming adjustment on August 9. The current average block time stands at about 10 minutes and 20 seconds. Data indicates a notable decline in mining difficulty at the end of June and early July, dropping to 116.9 trillion, before resuming its upward trend later in July. Mining difficulty and total network computing power are crucial for miner profitability and help maintain Bitcoin's scarcity, shielding its price from potential overproduction. The stock-to-flow ratio plays a significant role in this dynamic; Bitcoin's ratio of around 120 indicates it is twice as scarce as gold, influencing price behavior concerning supply changes. The difficulty adjustment process ensures that the network maintains a steady block production rate, stabilizing Bitcoin's market despite fluctuations in computing power.

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