Bitcoin’s hash rate climbed to an all-time high over the weekend, spiking to 465 EH/s on Saturday from 406 EH/s. Even though the value decreased by 6% to 428 EH/s on Sunday, the hash rate is still at its highest. Meanwhile, there was also a 3-day average rise of more than 18% to 444 EH/s.
Bitcoin hash rate increases
BitInfoCharts notes that the bitcoin hash rate hit a record high on July 8 at 465 EH/s. Notably, a more secure network correlates with a higher hash rate, which erects significant hurdles for anyone attempting to undermine the network’s integrity. The network becomes exponentially more resistant to bad actors as the hash rate rises since the difficulty level for possible attacks also rises.
Another report noted that while it was a common belief, Texas’s heat wave last week was not strong enough to affect the state’s electrical grid. The rise in hash rates was attributed to bitcoin miners returning to near full capacity after a seasonal decrease. This development could increase Bitcoin mining difficulty above 7.5%, as the report suggests.
However, the growth isn’t just coming from Texas, according to the report’s authors, who noted that thousands of other miners worldwide are increasing capacity when/if they can. According to the World Population Review, the United States continues to be at the forefront of the worldwide bitcoin hash rate distribution, accounting for 35.4% of it, followed by Kazakhstan (18.1%) and Russia (11.23%).
Meanwhile, the UAE is actively working to establish itself as a strong player in the bitcoin mining industry. The region now covers over 4% of all bitcoin mining activity worldwide.
Miners could suffer after the next halving
Bitcoin halving, an event that happens every four years and cuts half of Bitcoin’s miner rewards, is usually followed by an increase in BTC price. The next halving, scheduled for April 2024, will reduce miners’ incentives from the current 6.25 Bitcoin per block, or $188,876, to 3.125 Bitcoin per block, or $94,438.
Crypto enthusiasts believe that the limited supply will assist in keeping Bitcoin’s price stable over time, or at least until 21 million tokens, the maximum amount that can ever be mined, are produced in the year 2140.
Due to price spikes following each reward half and improvements in mining rig efficiency brought about by technological developments, miners have so far been able to make up for the cash lost when payouts are reduced. However, the bitcoin mining economy looks worse than before the next halving. As a result of less effective mining operations and higher expenses, Jaran Mellerud, a crypto-mining expert at Hashrate Index, forecasts that “nearly half of the miners will suffer.”
For the miners, their misery doesn’t end there. The Hashrate Index report also found a greater separation between the premium of new and mid-generation hardware and next-generation ASICs like the S19 XP. While they become more expensive, other models stagnate or fall in value as miners prioritize these rigs to prepare for the halving.
BTC price has been quite stable
Over the weekend, the price of bitcoin remained quite stable, slightly above $30,000. In the early hours of July 10, BTC decreased as the asset decreased to $30,190. However, throughout the day, the price has increased to $30,346 at the time of writing.
The market confidence is waning, and the decline is accelerating, so a drop below $30,000 is likely. For miners, this probably means more bad news.