Yesterday, Bitcoin mining set a historic milestone, reaching an all-time high hashrate of 528 Ehash/s, as reported by CoinWarz.
A new historical record for the hashrate of bitcoin mining was reached yesterday, October 8, 2023. Data from CoinWarz indicates that 528 Ehash/s was surpassed for the first time ever.
The hashrate of bitcoin mining at its peak historically
Yesterday saw the hourly peak, which was somewhat higher than the September 15 peak of 527 Eh/s.
However, it should be noted that the hashrate dipped down below 400 Eh/s following yesterday’s peak, and that the monthly minimum hourly peak was recorded on October 5th at 345 Eh/s.
Instead of looking at hourly peaks, it is preferable to look at daily or weekly averages to obtain a clearer understanding of the current trend.
Regarding the daily averages, the highest point was reached on September 15, which marked the first time in history that the daily average of 488 Eh/s was surpassed.
It is important to keep in mind that these are merely estimates, and that the daily averages are more accurate than the hourly ones because it is impossible to determine the precise amount of hashrate being utilised for bitcoin mining at any particular time.
The pattern of growth
On the other hand, the medium-term trend appears to be upward.
In fact, the weekly averages show that they have been climbing since the start of the year, and that the all-time high of 440 Eh/s was only attained yesterday.
The weekly average of the Bitcoin hashrate was less than 230 Eh/s at the end of 2022.
But as soon as Bitcoin started to appreciate once more, which made mining more lucrative, miners restarted the less productive equipment they had switched off in 2022, and the hashrate quickly returned to previously unheard-of levels in a matter of weeks.
Specifically, it reached around 300 Eh/s by the end of January, and shortly before mid-February, it was exceeded for the first time in the history of bitcoin.
The weekly average hashrate increased to around 360 Eh/s in April following bitcoin’s first annual price rise to almost $31,000, then it fell down to 330 in May.
Between June and July, there was another surge that reached as high as 410 Eh/s after initially approaching 400 Eh/s.
It’s important to remember that since August, the price of bitcoin has not risen above $31,000. In September, it even briefly dropped below $25,000. Nevertheless, the weekly hashrate reached a new all-time high above 430 Eh/s soon after the middle of the month.
The record established yesterday was almost $28,000, 12% less than the peak in July.
The Profitability Issue
The truth is that miners’ expenses are increasing as revenue declines due to a lower BTC price and a bigger hashrate.
The profitability of bitcoin mining is currently close to its all-time low as well as the lows from the start of the year.
As of right now, the projection is slightly over $0.056 per THash/s per day, up from $0.054 in January. Nevertheless, it also dropped below $0.051 in December 2022.
It’s enough to say that profitability soared to $0.45 per THash/s per day, or about 10 times the present level, when the price of bitcoin peaked at the end of 2021 and the hashrate was less than 170 Eh/s.
It was above $0.060 even in the end of 2020, before the last significant bull run started, with a BTC price below $20,000 and a hashrate below 120 Eh/s.
Bitcoin Mining: The Impending Halving and Its Effect on Hashrate Overall
Furthermore, the payout for miners will be cut in half in April 2024.
It’s possible that miners with inefficient rigs are attempting to maximise their output before the prize is half, forcing them to shut down permanently.
Another possibility is that some miners are mining at a loss right now in an effort to get Bitcoins before the halving.
The months leading up to the halving may be used by someone storing Bitcoin in expectation of a predicted rise in its value, as it is not always the case that the entire amount of BTC mined must be used to cover the miners’ operational expenses.
Actually, take note that a similar event occurred in 2019 prior to the most recent halving in May 2020, at which point the price of bitcoin fell below $10,000 and the hasrate increased from 40 to 100 Eh/s.
The hasrate decreased from 121 to 94 Eh/s at the time of the halving, but it began to climb once more in September 2020 when the price of bitcoin surpassed $10,000 without falling below that level.
