Bitcoin (BTC) Hashrate Reaches New All-Time High, Showcasing the Growing Security of the Network

The Bitcoin network hashrate — the total computing power securing the Bitcoin network — reached an all-time high of 769.8 exahashes per second (EH/s) on Oct. 21.

The Bitcoin ( BTC ) hashrate has hit a new record high, highlighting the growing security of the world’s first blockchain network.

The Bitcoin network hashrate — the total computing power securing the Bitcoin network — reached an all-time high of 769.8 exahashes per second (EH/s) on Oct. 21.

The hashrate has been in a steady uptrend since 2021, BitInfoCharts data shows. The hashrate's escalation is largely attributed to advances in mining hardware, such as application-specific integrated circuits (ASICs).

Bitcoin network hashrate, all-time chart. Source: BitInfoCharts

While the Bitcoin hashrate indicates the increasing security of the network, it also drives up the cost to mine Bitcoin.

Together with the reduction in block rewards from the upcoming 2024 Bitcoin halving, the rising hashrate might lead to miner consolidation, especially among smaller companies.

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Bitcoin miner consolidation expected among smaller firms

As the cost of mining a Bitcoin increases, smaller firms with less efficient mining rigs might become unprofitable, leading them to shut down their operations or search for mining headquarters with lower energy costs.

Energy-efficient mining equipment is crucial for miners to remain profitable after the fourth Bitcoin halving, according to Nazar Khan, co-founder and chief operating officer of TeraWulf.

In an interview with Cointelegraph, Khan mentioned:

“The rising hashrate will continue to drive up the difficulty and cost to mine Bitcoin, especially ahead of the halving, which will reduce miner rewards.”

Largest Bitcoin mining companies. Source: CompaniesMarketCap

TeraWulf is the world’s sixth-largest Bitcoin mining company, valued at over $670 million, according to Companiesmarketcap. Despite the halving of block rewards, it plans to further expand its mining operations this year.

Bitcoin miners not selling, yet

Despite the rising Bitcoin mining difficulty, mining firms have not increased their Bitcoin selling.

On Oct. 20, Bitcoin mining firms sent a total of 2,916 BTC to centralized cryptocurrency exchanges (CEXs), marking the fourth-lowest day of selling in 30 days, according to CryptoQuant data.

Bitcoin: Miner to exchange flow (total), all miners. Source: CryptoQuant

Some miner consolidation was observed after the Bitcoin halving on May 10, as the network's hashrate dropped to a two-month low of 575 (EH/s).

Mining Bitcoin at home — Is it time to start? Source: Cointelegraph

James Butterfill, head of research at CoinShares, attributed May’s drop in hashrate to miners “beginning to turn off unprofitable rigs.”

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