Bitcoin Hashrate Hits New All-Time High
A higher hashrate is a sign of trust and health in the Bitcoin network.
The arrival of more powerful miners and even the reconnection of old miners influences the rise.
The Bitcoin network hashrate has reached a new all-time high. This network security indicator reached the record figure of 734 EH/s. A higher hashrate is a sign of trust and health in the Bitcoin network. The arrival of more powerful miners and the reconnection of old miners influences this increase.
The hashrate, which represents the total processing power that the Bitcoin network uses to mine and process transactions, has been a fundamental pillar for the security of the pioneering cryptocurrency since its inception. This new recordshown by Hashrate Index, could indicate that there are a large number of Bitcoin miners investing in specialized hardware and energy to secure the network.
However, in contrast to the rise of the Bitcoin hashrate, the hashprice has been in decline. This Tuesday, The hashprice reported a crash to USD 47 per PH/s per day. This decorrelation between hashprice and hashrate is due to the fact that the increase in the latter makes bitcoin mining more competitive, which has a negative impact on miners’ rewards.
The hashprice is the price that miners receive for each hash of computing power they contribute to the network. A low hashprice can affect mining profitability, although it does not always deter miners if they believe in the future value of bitcoin (BTC).
At the beginning of October, CriptoNoticias reported that the profitability of Bitcoin miners had decreased for the third consecutive month. This decline in profitability was attributed to several factors, including a 9% increase in Bitcoin mining difficulty in September 2024 compared to August of the same year.
Meanwhile, the Bitcoin network difficulty, which is adjusted approximately every two weeks, currently remains at 95.6 T. This difficulty is expected to decrease by 9.13% on November 6, according to the Hashrate Index data.
The difficulty is adjusted to ensure that blocks are added to the Bitcoin chain every 10 minutes on average, regardless of the total hashrate. A high hashrate usually leads to an increase in difficultysince more computing power requires more complex mathematical problems to keep the block production rate constant.
This difficulty adjustment cycle and the ever-increasing hashrate reflect the evolution and continuous improvement of mining technologywhere each new advance in energy efficiency or hashing capacity allows the network to process more calculations with less energy consumption per hash.
The relationship between a high hashrate and the price of bitcoin is complex. Historically, it has been observed that a high hashrate can correlate with a rising BTC price as it suggests confidence and growing interest in the digital currency. However, this is not an infallible indicator, and other economic and market factors play a crucial role.