Bitcoin’s computational might, as indicated by network hash rates, surged to groundbreaking heights over the past weekend. This surge comes amid escalating pressure on Bitcoin miners due to soaring hardware costs and stagnant profitability.
Understanding Bitcoin’s Network Hash Rate Record
In a significant development over the past weekend, Bitcoin’s 7-day and 3-day average hash rate skyrocketed, setting new records. Hash Rate Index, a reputable source in the Bitcoin mining industry, backed this data.
July 9 marked a key turning point in Bitcoin’s journey. The Hash Rate Index highlighted the impressive acceleration of the network’s computational power throughout this period.
The 7-day average hash rate reached an all-time high of 401 EH/s (exahashes per second) on July 8, a Saturday. Furthermore, the 3-day average exhibited an unprecedented jump of over 18%, amounting to 444 EH/s.
The remarkable aspect of this development is that the overwhelming majority of this growth transpired over the past weekend.
The Impact of Climatic Conditions on Hash Rates
Interestingly, the report also highlighted that the previous week’s heatwaves in Texas, often a significant factor for mining operations, were insufficient to cause notable disturbances to the Texas power grid. Bitcoin miners usually scale back during extreme weather conditions, but they operate at nearly maximum capacity, contributing to the surge in hash rates.
This climatic resilience could trigger a substantial upward adjustment in mining difficulty, potentially exceeding 7.5%. The mining difficulty stands at 50.64 T, marginally below its peak last month, but the impending adjustment may propel it to uncharted territory.
The Effect on Bitcoin Miners
These combined factors are poised to exert additional pressure on Bitcoin miners, particularly as the hash price, a measure of mining profitability, continues its downward trajectory. The hash price currently hovers at around $0.075 per TH/s per day. It peaked at $0.127 in early May amidst the crypto minting frenzy that significantly overloaded the network.
Miners should brace for potentially diminished payouts. Unless Bitcoin’s price experiences a more drastic surge in the upcoming week, miners could encounter a sub-$70/PH/day hash price upon the next adjustment.
Navigating Through Hardware Challenges
The challenges for Bitcoin miners are far from over. The report observed a growing divergence in the premium for next-generation ASICs, such as the S19 XP, compared to new and mid-generation hardware.
In anticipation of the halving event and prioritizing these rigs, their prices are rising, while other models experience a decline or stagnation. This price dynamic adds another layer of complexity to miners’ existing challenges.
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