Bitcoin price plummets while miner hash rate soars to all-time highs

Bitcoin miners can’t cease, received’t cease. The Bitcoin (BTC) hash charge continues to surge to new all-time highs, despite a heavy price drawdown. 

The Bitcoin mining hash charge peaked at 258 exahashes per second (EH/s) on Oct. 4, according to Braiins Insights, a mining information instruments and metrics firm. Though the Bitcoin worth is down 58% year-to-date in opposition to the US greenback, the mining hash charge is up 43%.

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The previous 3 months Hashrate. Supply: Braiins. 

Bitcoin Gandalf from the advertising crew at Braiins instructed Cointelegraph that, “The hash charge hitting one other all-time excessive reveals that miners are bullish concerning the future prospects of Bitcoin.” Nonetheless, the current macroeconomic environment might pose a difficulty, as “the current isn’t so rosy for Bitcoin miners,” Gandalf mentioned, including:

“Bitcoin continues to commerce on this tight band between $19,000–$20,000 and this latest enhance in hash charge will lead to a pointy upward adjustment in mining problem that means that miner margins shall be additional squeezed.”

In a sequence of tweets, mining engineers and hobbyists shared their ideas relating to the hash charge hitting all-time highs whereas the value stays low. Rob W of Bitcoin mining firm Upstream Knowledge summed up the sentiment: 

Market analyst Zack Voell explained that the surging hash charge could possibly be because of “XPs coming on-line.” The S19 XP Antminer is the most recent mannequin from Bitmain, one of many world’s hottest Bitcoin mining {hardware} suppliers.

The variety of hashes produced in a second is usually known as the hash charge. In Bitcoin communicate, hash charge is a crucial safety metric in addition to one which many BTC miners preserve their eyes on.

In easy phrases, the extra hashing — or computing energy — that the community churns out, the higher the general safety of Bitcoin. Consequently, Bitcoin is extra immune to assault, the most typical of which is known as a 51% attack.

At the moment, increasingly more miners are coming on-line to aim to unravel legitimate blocks to obtain the Bitcoin block reward, which is at the moment 6.25 BTC, roughly $120,000. Blocks are solved and added to the Bitcoin blockchain on common each 10 minutes.

Associated: Nuclear and gas fastest growing energy sources for Bitcoin mining: Data

The troublesome adjustment determines the speed at which blocks are solved. It fluctuates roughly each two weeks and is predicted to extend on Oct. 10 based mostly on the surging hash charge. The issue adjustment has been on a gentle march upward in 2022 — that means blocks are, on common, getting tougher to unravel — after falling for the first time in March 2022.

In sum, although the Bitcoin worth continues to wallow beneath $20,000, increasingly more miners discover worth in supporting the community. James Examine, an analyst at Glassnode, explained in a tweet, “With hash charge pushing to new all-time-highs as soon as once more, regardless of all the guarantees on the contrary, it seems that #Bitcoin continues to be not useless.”