Bitcoin’s hash rate has reached a new all-time high of 791.62 million terahashes per second (TH/s). This surge marks a 74% increase compared to a year ago. The hash rate measures the total computing power used by miners to process transactions and secure the network. A higher hash rate means the network is more secure and efficient.
In early October, data showed the hash rate fluctuating between 574 million and 742 million TH/s. These changes hinted at a significant rise. Eventually, the hash rate surpassed 791 million TH/s, where it has remained steady for two days.
Advanced mining equipment has played a key role in this increase. New mining gear is more powerful and efficient, allowing miners to process more transactions. This technology boost has improved the network’s security.
Publicly-listed Bitcoin miners in the United States have also influenced the hash rate surge. Companies like Marathon Digital, CleanSpark, and IREn now control about 29% of the global network hash rate. According to J.P. Morgan analysts, 14 U.S.-based mining operations have become major global players. Their efficiency and funding advantages help them withstand market fluctuations and expand their mining activities.
These large miners benefit from economies of scale. They can invest in advanced mining gear and secure better electricity rates. This makes them more competitive than smaller operations. The rise of U.S.-listed miners has shifted the mining landscape.
While a higher hash rate strengthens network security, it also increases competition among miners. The cost of mining one Bitcoin is getting more expensive. Miners need to invest in better equipment and consume more electricity to stay competitive.
Bitcoin’s mining difficulty is nearing a record high. Mining difficulty measures how hard it is to find a new block. It adjusts every 2016 blocks, about every two weeks, to maintain a consistent block time of 10 minutes. As of block 866,682, the difficulty stands at 92.05 trillion, just below the record of 92.7 trillion reached on September 11, 2024.
The next difficulty adjustment is expected on October 22. It’s projected to increase by at least 4.17%, reaching 95.88 trillion. This will make mining even more challenging. Miners will need more computational power to find valid blocks.
Despite rising difficulty and hash rate, miners are still earning steady revenue. On October 20, 2024, daily Bitcoin mining revenue was $38.38 million, a slight 1.17% dip from the previous day. However, revenue has decreased by 33.2% compared to the same time last year. This drop is partly due to the block reward reduction from the halving event earlier in the year.
The halving event reduced the block reward from 6.25 BTC to 3.125 BTC. Halving occurs approximately every four years to control Bitcoin’s supply and reduce inflation. While it supports long-term value, it decreases miners’ earnings per block.
As mining becomes less profitable, smaller operations might struggle. Finding valid blocks is harder, and operating costs remain high. There’s a possibility of industry consolidation, where larger companies absorb smaller ones or force them out of the market.
On Sunday, Bitcoin’s price climbed past $69,000, hitting an intraday peak of $69,363 per coin. Over the past week, Bitcoin gained 9.3%. Since the start of the year, it has expanded by 63%, and over the last 12 months, it increased by 132%. These figures show strong market performance.
The global trading volume across the cryptocurrency economy is $71.30 billion, with Bitcoin contributing $15.25 billion. The last time Bitcoin reached these price levels was in late July 2024. It then dropped sharply to $49,577 during the first week of August. This time, Bitcoin has gradually edged back up to the $69,000 mark.
In derivatives markets, there were $117.7 million in liquidations over the past day. Liquidations happen when traders can’t meet margin requirements, leading to closed positions. Surprisingly, Bitcoin liquidations were less than those of ApeCoin (APE) and Ethereum (ETH), which saw larger losses. This suggests Bitcoin traders are managing risk more effectively.
In South Korea, Bitcoin is trading at a lower price. On the Upbit exchange, it’s priced at $68,809, while it exceeds $69,000 elsewhere. This price difference reflects regional market variations.
The significant increase in hash rate and mining difficulty has several implications. For the network, it enhances security, making it harder for bad actors to launch attacks. For miners, the competition intensifies. They need more efficient equipment and cheaper electricity to remain profitable.
The rise of advanced mining gear contributes to the higher hash rate. These machines perform more calculations per second while using less energy. This efficiency is crucial as mining difficulty increases.
Publicly-listed miners have advantages that smaller operations lack. They have better access to capital, allowing them to invest in cutting-edge technology. Their funding advantages help them expand even when market conditions are tough.
Smaller miners might face challenges. As mining becomes more competitive, they might struggle to cover costs. Some might join mining pools to combine resources and increase their chances of finding blocks. Others might focus on renewable energy to reduce electricity expenses.
The mining industry could see consolidation. Larger companies might acquire smaller ones. This could lead to a more centralized mining landscape, which raises concerns about decentralization.
Bitcoin’s price increase reflects strong investor interest. High trading volumes indicate active market participation. The price recovery from previous drops shows resilience.
Liquidations in the crypto market can signal volatility. The lower level of Bitcoin liquidations suggests traders are cautious. Higher liquidations in other cryptocurrencies point to greater risk-taking in those markets.
The price difference in South Korea, sometimes called the “Kimchi Premium,” can result from regulatory factors or local demand. Understanding these variations helps in assessing the global market.
Advancements in mining technology will continue to impact the network. More efficient equipment enhances security but raises the bar for participation. Environmental concerns also drive innovation toward energy-efficient solutions.
The halving event plays a crucial role in Bitcoin’s ecosystem. By reducing the block reward, it controls the supply and influences miner revenue. Miners must adapt to these changes to remain profitable.
Bitcoin’s network is stronger than ever, with a record hash rate and rising mining difficulty. The industry is evolving, with large U.S.-listed miners gaining prominence. While challenges exist for smaller miners, the community continues to adapt. The market shows confidence in Bitcoin, reflected in its price and trading volumes.
Investors and enthusiasts should watch these developments. Understanding the factors affecting Bitcoin’s network and market helps in making informed decisions. The ongoing changes highlight the dynamic nature of the cryptocurrency space.
