Bitcoin mining: hashrate skyrockets ahead of halving event
In the days leading up to the fourth halving event, the hashrate of Bitcoin has surged to new heights, surpassing 700 EH/s. Despite minor adjustments from miners who anticipate the halving, the 7-day average hashrate is on track to hit record levels.
The chart of Bitcoin’s total hashrate reveals the increasing trend of computational power contributed by mining operators. Currently, the “Mean Hashrate” stands at 704.8 EH/s, nearing an all-time high. While the hashrate dipped slightly in recent days due to some miners reducing their computational power, the overall growth remains intact. Just a year ago, the hashrate was 40% lower than the current levels.
In the midst of this growth, some miners are looking to accumulate as much Bitcoin as possible, anticipating future price appreciation. The Buddhist Kingdom of Bhutan plans to expand its mining production sixfold, powered by renewable energy sources, putting them at an advantage over other operators who rely on electricity.
With the fourth halving event looming, miners are preparing for the subsequent reduction in block rewards. The reward will be halved from 6.25 BTC to 3.125 BTC per solved block, effective immediately. This reduction in emission aims to increase the value of Bitcoin if there is continued demand in the market.
Approximately 11 days remain until the halving event, which will occur at block height 840,000. To minimize the economic impact, companies in the Bitcoin mining industry are exploring innovative solutions. Luxor Technology and Bitnomial are collaborating to create an ETF futures based on the network’s hash, allowing miners to hedge their risk. Regulated on the stock exchange, this product offers liquidity and security for traders.
Despite the upcoming halving, the profitability of mining activities remains intact. Compared to a year ago, the hashprice has risen from $0.07 per 1 TH/s to $0.1, indicating that miners can still generate profits amidst increased competition within the network.
As the halving event draws near, the Bitcoin mining industry continues to navigate the evolving landscape by adopting new strategies and technologies to ensure sustainable profitability.