Bitcoin's record-high hashrate will finish off miners
Date: 2023-07-10 Author: Karina Ziganova Categories: BLOCKCHAIN, BUSINESS
The hashrate of the Bitcoin network over the weekend updated historical highs, making life difficult for miners who already have to survive in the face of rising equipment prices.
According to the Hash Rate Index, last weekend, the average bitcoin hashrate for seven days and three days reached record values.
Bitcoin Miners in Survival Mode
The analytical service Hash Rate Index, specializing in bitcoin mining, drew attention to the fact that the hashrate on the bitcoin network increased sharply over the weekend.
On Saturday, July 8, the average seven-day bitcoin hashrate reached 401 EH/sec. The three-day average rose by more than 18% to 444 EH/sec.
"What's surprising is that the lion's share of that growth (almost all) came this weekend."
July 8 and dropped to 428 EH/sec the next day.
The report also notes that during extreme weather conditions, miners working in Texas reduce work to reduce the load on the power grid. But last week there was no extreme heat in this state, so they worked at full capacity, which explains the increase in hashrate.
Along with the hashrate, the complexity of mining can also increase. Experts believe that with the next adjustment, it will increase by 7.5%. Currently, the mining difficulty is 50.64 T, which is just below the peak reached last month, but the next adjustment is likely to raise it to a new all-time high.
Hashrate is getting cheaper
The pressure on bitcoin miners will increase due to the fall in the value of the hashrate. This figure is now $0.075 per TH/day and reflects the profit that miners can make. In early May, when the market became interested in mining ordinals, the value of the hashrate rose to $0.127, which led to a strong congestion of the network.
"I hope you all enjoyed the payouts of $70-80 per PH/day, because if the price of bitcoin doesn't skyrocket even more next week, after another difficulty adjustment, the hashrate value will fall below $70/PH/day."
The problems of bitcoin miners do not end there. The HashRateIndex report notes a growing gap in the cost of next-generation ASICs like the S19 XP with their predecessors.
"Miners are preparing for halving and buying the latest equipment, respectively, new models are becoming more expensive, while others are getting cheaper or stagnating," the report says.
Over the weekend, the bitcoin rate was just above $30,000. At press time, BTC is trading at $30,155 with a slight decrease.
A fall below $30,000 looks likely as market sentiment weakens and the correction gains momentum. Bleak news for mining companies.
