Upward computing trend: Bitcoin hashrate continues to rise before halving

New record

On November 5, Bitcoin’s hashrate broke through the 600 EH/s (exasheesh/sec) value. This means that the amount of computing power involved in Bitcoin mining at that point in time was the highest in history.

Yes, Bitcoin is now rising in value, but it’s nowhere near its recent highs, and it’s not entirely clear how soon the planned April 2024 halving will affect the coin’s price and how much it will change it. Let’s take a closer look at the history of changes in this indicator.

Hashrate Trends

If we look at the graph of Bitcoin’s aggregate hash rate, we can state that it has been growing steadily and steadily for a long time;

Source: bits.media/hashrate/bitcoin/

We can only identify three instances since 2021 where this dynamic has changed even briefly:

• the first is from May to July 2021 due to the banning of cryptocurrencies by Chinese authorities;

• The second is from May 2022 due to turbulence in the cryptocurrency markets amid the collapse of Terra LUNA and UST;

• The third is in November 2022 immediately following the collapse of FTX

But after each of these events, the hashrate quickly recovered and set new records again. Even after the most serious one – the ban on mining in the PRC – it only took a few months for aggregate computing power to fully recover.

There is a clear upward trend in 2023. And so, in November, the hashrate hit the 600 EH/s mark. Note: 2023 started at 300 EH/s, and now we are talking about twice that value already. And the year isn’t even over yet.

What could that possibly mean?

• First, Bitcoin, contrary to many predictions, has not lost popularity. On the contrary, the first cryptocurrency has become more sought after by miners.

• Secondly, it is obvious that bitcoin mining is profitable and has proper investment appeal. And this may partially explain the current hashrate records – everyone is trying to get the most out of their asics in the run-up to halving.

  When the reward is inevitably halved, miners will be forced to permanently unplug the least efficient devices, i.e. those that consume more resources with the lowest performance compared to other machines