Bitcoin (BTC) this month continues to set new records for its network hash rate, indicating that miners are unhappy with poor price performance. Hash rate reached its highest level in October Data from Blockchain monitoring sources confirmed that the hash rate on October 23 was 134 quintillion per second. This is the biggest hash rate ever seen by related websites like BitInfoCharts. Because of the inability to accurately measure hash rates, all graphs rely on the block time of the previous period.
Hash rates represent the total computational power of transactions in the bitcoin network chain. It also show more power, more network security, and an interest in bitcoin mining’s profit potential. In other words, miners expect higher bitcoin prices in the future.
The profitability of mining is tested with the latest price drop
As Cointelegraph reported, it appears that the hash rate has experienced fluctuations in the past few months. Before the analysts explain, these statistics do not indicate that miners are leaving Bitcoin. However, rising hash rates in the face of falling bitcoin prices indicate its emphasis on investing in the mining and cloud mining industry and its future profitability. The mining giant of the world, Bitmain, for example, launched the world’s largest mining farm in Rockdale, Texas this week.
On the other hand, the profitability criterion is actually approaching its lowest level in a year, while a miner tells Cointelegraph that $ 6,500 is the bottom price to maintain profitability for participants. If the price stabilizes at this level, bitcoin can then reduce the hashing power, as many miners may turn off their mining devices that reduces network difficulty or increases Bitcoin price.
According to investor Dovie van, the status of miners, such as the Bitmain Antminer S9 – one of the most famous miners in the world – is now at a loss at current prices even before various costs such as electricity are considered in calculations. Therefore, it is not yet clear whether the latest bitcoin price drop will have a negative impact on the hash rate.
Everyone is looking forward to the halving ahead
Since May 2020, extractors have been competing to earn 6.25 BTC instead of the 12.5 BTC they now earn per block. With the equivalent of $ 63 million less income for bitcoin miners per week, analysts widely expect the halving event to dramatically increase bitcoin prices.