Bitcoin miners struggle as hashrate surges
On the 29th of May, Luxor Technology’s HashRateIndex revealed that over the past seven days, Bitcoin’s computing power reached a record-setting peak of 659 exahashes per second (EH/s). This marks a significant rise of 13.6% from the low of 580 EH/s experienced after the halving event.
In addition, Bitinfocharts has reported that the average computing power exerted across the network also achieved a new zenith, soaring to 732 EH/s during the past weekend.
This escalation in computational effort signals increased challenges for Bitcoin miners, as extracting each block demands more effort and competitiveness. However, a silver lining exists as elevated hashrates contribute to bolstering the security infrastructure of the Bitcoin blockchain.
Heightened Rivalry in Bitcoin Mining
HashRateIndex noted that this uptick in hashrate might be a sign that publicly listed Bitcoin mining entities are activating their Advanced Silicon Carbide Integrated Circuit (ASIC) orders as planned. Consequently, the activation of a more potent mining apparatus intensifies the rivalry, with a significant influx of hashing power entering the scene.
BREAKING: #Bitcoin’s 7-day Hashrate soared to a record high of 659 EH/s, reflecting a 13.6% climb from its previous post-halving dip to 580 EH/s.
What's driving this remarkable hashrate surge? 🧵 pic.twitter.com/XcJpH3XFx2
— Hashrate Index 🟧⛏️ (@hashrateindex) May 28, 2024
As per the current data, the average time taken to mine a block now stands at an astonishing 9 minutes and 26 seconds. It was also reported that leading public mining operators had orders for equipment tallying up to 76.6 EH/s for the year 2024, with 12.9 EH/s expected in Q1 and nearly 36 EH/s anticipated in Q2, HashRateIndex highlighted:
“No matter the source, the ongoing hashrate surge is set to confront miners with a significant difficulty adjustment upward in roughly 8 days.”
It's predicted that this difficulty adjustment will rise by +5.97%. Difficulty is an index reflecting the level of competition among miners to secure blocks on the network. Presently, it stands at 84.38T following a decline from a high of 88.1T earlier this month. Yet another increase will exacerbate the challenges faced by miners.
“Should the price of Bitcoin remain constant, we anticipate the upcoming adjustment to drag the hashprice below $50/PH/Day,” it noted.
Hashprice quantifies the expected earnings for miners per unit of hash rate.
A Depreciation in Hashprice
Currently, the hashprice hovers around $53 per petahash per second per day, witnessing a 46% drop since the year’s start.
Hashprices experienced a meteoric surge to $400/PH/s/day during the apex of the cryptocurrency market cycle in 2021 but have since plummeted by 87%, with mining profitability dwindling due to heightened competition, and the soaring costs of energy and hardware, alongside increasing network hashrates.
This downturn has compelled major mining corporations to explore more economically viable energy sources in countries across Africa and Scandinavia.
