Challenges Faced by Bitcoin Miners Post-Halving Event

Bitcoin miners are encountering obstacles due to the recent halving event, which led to a decrease in block rewards. Despite this setback, the hashrate is rising once again. Luxor Technology’s HashRateIndex has reported a new seven-day high of 659 exahashes per second (EH/s), representing a 13.6% increase from the post-halving low point. Additionally, the average network hashrate reached a record high of 732 EH/s during the weekend.

The increase in hashrate indicates heightened competition and complexity for miners. Although a high hashrate enhances the security of the Bitcoin network, it also escalates the mining challenge. The surge in hashrate may be attributed to public Bitcoin miners activating their ASIC orders promptly, introducing more potent hardware into the competitive environment.

Currently, the average block time is 9 minutes and 26 seconds. Public miners have placed orders for equipment totaling 76.6 EH/s by 2024, with 12.9 EH/s delivered in Q1 and almost 36 EH/s in Q2. This spike in hashrate is expected to result in a +5.97% difficulty adjustment in about eight days, further increasing the mining challenge.

The present mining difficulty level stands at 84.38T, down from the peak of 88.1T. An upward adjustment will worsen the miners' predicament. Hashprice, which measures miner earnings, is currently at $53 per petahash per second per day, a 46% decline since the start of the year. During the peak of the crypto market in 2021, hashprices soared to $400/PH/s/day but have since dropped by 87%.

Amidst escalating competition, energy costs, and hardware expenses, major mining corporations are searching for more affordable energy sources in Africa and Scandinavia. As mining profitability diminishes, these companies must innovate to endure in the competitive mining landscape.