Originally published on: October 21, 2024
The Bitcoin network has hit a new milestone with its hashrate soaring to an all-time high, showcasing the robust security features of the pioneering blockchain network.
On Oct. 21, the total computing power securing the Bitcoin network reached an unprecedented 769.8 exahashes per second (EH/s), marking a significant achievement in the cryptocurrency world.
According to data from BitInfoCharts, the Bitcoin hashrate has been on a continuous upward trend since 2021, mainly driven by advancements in mining hardware such as application-specific integrated circuits (ASICs).
While the escalating hashrate is a positive indicator of the network’s growing security, it also implies a rise in the cost of mining Bitcoin, which currently stands at $67,310. Coupled with the block reward reduction expected from the 2024 Bitcoin halving event, this surge in hashrate could lead to the consolidation of miners, particularly smaller firms.
Energy-efficient mining equipment will play a crucial role in ensuring profitability for miners post-halving. Nazar Khan, the co-founder and COO of TeraWulf, the sixth-largest Bitcoin mining company globally, emphasizes the significance of efficient mining rigs in this evolving landscape.
Despite the challenges posed by increasing mining difficulty, major mining firms have refrained from significant Bitcoin selling activities, as indicated by data showing a decrease in Bitcoin sent to centralized cryptocurrency exchanges (CEXs).
Following the Bitcoin halving in May, some miner consolidation was observed, with the network’s hashrate dropping to a two-month low. This was attributed to miners switching off unprofitable rigs, a strategic move in response to changing market conditions.
As the Bitcoin network continues to evolve, it raises questions about the feasibility of mining Bitcoin at home and the potential impact on individual miners. Stay tuned for more updates on the latest developments in the cryptocurrency space by subscribing to our Finance Redefined newsletter.