On September 7, the 7-day average mining hash rate of the Bitcoin network reached a new all-time high, breaking through 740 exahashes per second. This figure indicates an increase in computational power used to secure the network and rising energy costs for miners.
Bitcoin Hash Rate Hits New Record
Data shows that the Bitcoin network continues to strengthen and provide greater security due to performing more than 740 quintillion hash calculations per second by miners worldwide. A higher hash rate implies greater computing power applied in securing a cryptocurrency's decentralized system, making an attack on it more difficult.
Implications for Miners
Due to the network's expansion, miners have to deploy more efficient machinery and consume larger amounts of electricity to keep up with the surging network activity. Usually, mining companies are large-scale operations housed in energy-intensive warehouses for processing transactions and minting new Bitcoin.
Decline in Miner Revenues
The increase in Bitcoin's hash rate translates into higher mining costs. Companies need to invest in more complex machinery and extra power to remain competitive. As a result, miner revenues have suffered, and August 2024 became the worst month for profitability since September 2023, despite total revenue reaching $827.56 million. While many miners are struggling to cope, the increase in Bitcoin's hash rate is a positive indicator for BTC's future prospects.
The rise in Bitcoin's hash rate signifies the network's strengthening and improved security but raises concerns over increased costs for miners. This phenomenon necessitates constant equipment upgrades and higher electricity costs for companies.
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