Bitcoin Hashrate Reaches All-time High

The Bitcoin hashrate has reached a new record high, reflecting the increasing security of the world's first blockchain network.

On Oct. 21, the Bitcoin network hashrate — representing the total computational power securing the network — hit an all-time high of 769.8 exahashes per second (EH/s).

Data from BitInfoCharts shows that the hashrate has been steadily rising since 2021, with this growth largely tied to advancements in mining hardware such as application-specific integrated circuits (ASICs).

While the rising Bitcoin hashrate indicates enhanced network security, it also means higher costs for mining Bitcoin.

Combined with the upcoming block reward reduction from the 2024 Bitcoin halving, the increasing hashrate may lead to consolidation among smaller mining firms.

As mining costs increase, smaller firms with less efficient rigs may struggle to remain profitable, potentially forcing them to shut down or relocate to areas with lower energy costs.

Energy-efficient mining equipment will be crucial for miners to maintain profitability after the next halving, according to Nazar Khan, co-founder and COO of TeraWulf.

In an interview with Cointelegraph, Khan stated:

“If you are a firm that just owns a bunch of machines and you are not profitable, you will be challenged. If you are a company that owns quality infrastructure that can deliver low-cost power, that’s a real asset, and if anything, the underlying value of that asset [BTC] has increased…”

TeraWulf, valued at over $670 million, is currently the sixth-largest Bitcoin mining company in the world, as reported by Companiesmarketcap.

Despite the upcoming block reward halving, TeraWulf plans to expand its mining operations further this year.

Despite the rising difficulty of Bitcoin mining, mining firms have not significantly increased their Bitcoin selling.

On Oct. 20, they sent a total of 2,916 BTC to centralized cryptocurrency exchanges, marking the fourth-lowest selling day in 30 days, according to CryptoQuant data.

Some miner consolidation was observed after the May 10 Bitcoin halving, when the network’s hashrate dropped to a two-month low of 575 EH/s.

James Butterfill, head of research at CoinShares, attributed this hashrate drop in May to miners “beginning to turn off unprofitable rigs.”

Sources:

https://cointelegraph.com/news/bitcoin-hashrate-hits-all-time-high

https://bitinfocharts.com/comparison/bitcoin-hashrate.html#3y

https://companiesmarketcap.com/bitcoin-mining/largest-bitcoin-mining-companies-by-marketcap/

https://cryptoquant.com/asset/btc/chart/inter-entity-flows/miner-to-exchange-flow-total