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The Bitcoin network hashrate has been operating at very fast processing speeds for the past few weeks as the total hashrate hit a whopping 171.2 exahash per second (EH / s) on Monday. In addition, the network’s mining problems have also reached a record high (ATH) of 20.61 trillion, the highest difficulty the network has ever experienced in the past 12 years.
One aspect of the Bitcoin (BTC) network that people look to to measure the overall health and growth of the protocol, the hashrate. At the time of publication it was BTC hashrate is processed at rates of around 165.38 EH / s and the miner’s collective hashpower has hit another record high. For example, on December 30, 2020, the network’s hashrate rose to a whopping 178.6 EH / s and 12 days later the hashrate hit 171.2 EH / s.
What has surpassed his ATH is BTCnetwork mining difficulty or difficulty adjustment algorithm (DAA). This week, the mining difficulty is the highest ever in Bitcoin’s lifespan to date. After the significant price dip on Monday and the accelerated hashrate on the same day, the protocol pushed the difficulty to mining 20.61T.
Because the hashrate is so high starting the second week of January 2021, the The difficulty of the Bitcoin network will increase by + 9.98% or 22.66T, another ATH in less than two weeks. This will take place, give or take in about nine days, depending on the average output of blocks per day.
The BTC hashrate has skyrocketed over the years as the entire network hashrate was only one exahash per second in January 2016. On May 8, 2017, news.Bitcoin.com reported on the BTC network hashrate hitting 4,216,797,036 GH / s or more than 4 EH / s. Since then and through the 2018 and 2019 bear market, the bitcoin hashrate has grown by more than 3,700%.
Before the block’s reward halved in May, bitcoin miners got 12.5 BTC per block found, but these days a bitcoin mining pool only gets 6.25 BTC reward per block. The current 165 EH / s is the aggregated hashrate of all 18 bitcoin mining pools doing “work” in the SHA256 “proof-of-work” consensus algorithm.
With a block reward found every ten minutes, the Bitcoin block inflation rate per year is only 1.78% during the first month of 2021. So far, even with this week’s BTC price cut miners still benefit a lot by dedicating hashrate to the chain. Statistics show that as much as $ 0.12 per kilowatt hour (kWh) more than 200 application-specific integrated circuits (ASIC) devices processing the SHA256 algorithm benefit today.
Bitcoin advocates are very confident about the overall hashrate and security of the cryptocurrency network. In a discussion about BTC trust, the bitcoiner Pierre Rochard explained that if people are “sure about the fundamentals of Bitcoin, exchange rate volatility is just a joyous tune.”
Rochard too said:
Confidence in being able to send bitcoin. Bitcoin’s global peer-to-peer network of nodes and massive mining hashrate ensure that your bitcoin gets where you send them without foreign interference.
Meanwhile, a number of dominant cryptocurrency exchanges are joining the mining industry. On Wednesday, reporter Colin Wu reported (@Wublockchain) discussed how Huobi is entering the mining economy. “China’s largest exchange Huobi is about to start selling BTC mining machinery, ”Wu said.
“Investors can buy machines + custody. The lock-in period is two years. Chinese exchanges are more entering the mining field. The Binance mining pool, which launched in 2020, was once ranked second in total BTC network, which surpasses many traditional mining pools, ”added the financial reporter from China.
What do you think of Bitcoin’s increased hashrate and the all-time high of the difficulty? Let us know what you think about this topic in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, coinwarz.com/mining/bitcoin/hashrate-chart, Btc.com,
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