Cryptocurrency

Bitcoin hashrate hits all-time high as Bitcoin holds above $20k

Zegex

According to Glassnode data, Bitcoin hashrate hit an all-time high of 331EH/s. Historically, there has been a loose correlation between hashrate and Bitcoin price, spurring debate as to whether hashrate follows price or vice versa.

hash rate

The hashrate surge comes at a difficult time for miners struggling to pay their debts after Bitcoin dropped 70% from $69,000. moreover, crypto slate It shows that there is a possibility of surrendering further.

If the hashrate trend continues without further price increases, a second capitulation may occur as miners sell Bitcoin. A similar situation occurred in his June, when a miner sold around 20,000 BTC.

Hashrate security

The benefit of ever-increasing hashrates is the reduced likelihood of a 51% attack on the network. With a hashrate of 313EH/s, an attacker would need about 1.9 million Antminer KA3 (166Th) miners.

In 2018, it cost just $1.4 billion to perform a 51% attack against Bitcoin when it cost just $8,000 to mine 1 BTC. Today, hashrate has increased by 900% of his, so the network is much more secure.Even in 2018, it took 2.4 million of his top ASIC miners for a malicious person to carry out an attack. It must have been.

However, while an increase in hashrate has made the network more secure, it also makes mining bitcoin more expensive. Less BTC is generated per kW of energy.

bitcoin miner

When the cost of mining Bitcoin exceeds its price, miners often face liquidity problems. Problems arise from a myriad of factors, including margin calls, cash flow, and other common operating costs. As a result, Binance Pool has launched a $500 million fund to help “bad mining assets.”

However, investment in Bitcoin mining shows few signs of slowing down. Several mining companies such as CleanSpark are looking for new investors. purchased Argo’s 3,83 miners. Riot built his new 1GW mining facility, Great American Mining was acquired by Crusoe Energy, and Compass Mining signed a contract for his new 27MW mining center.

New innovations in the mining space include a new liquid-cooled mining machine from Fabric Systems, a mining investment entity from Greyscale, and Block, which has launched a new mining unit that acquired the former Argo CTO.

While the near-term situation may be ominous for bitcoin miners, there is little evidence of long-term bearish sentiment.

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