As a seasoned crypto investor with a keen interest in on-chain data and market trends, I find the current state of Bitcoin’s mining landscape quite intriguing. The recent development where miners require more than 1 EH/s of daily computing power to mine just one token of Bitcoin is a significant milestone in the asset’s history. This “Hashcoin” metric, as explained by CryptoQuant’s Julio Moreno, has hit an all-time high (ATH), reflecting the increased competition among miners to secure block rewards.
Bitcoins mining process now demands over 1 exahash per second (EH/s) of daily computational power to generate a single token, as indicated by on-chain data – a new record in Bitcoin’s history.
Bitcoin Hashcoin Has Set A New All-Time High Now
According to a recent post by CryptoQuant’s head of research, Julio Moreno, the Bitcoin mining network has reached a new milestone in terms of hashpower required to mine one Bitcoin. This metric, referred to as “Hashcoin,” indicates the daily hashrate needed to produce a single bitcoin.
The Hashrate represents the total computational power linked to the Bitcoin mining network. It’s expressed in hashes per second (H/s) or, more commonly nowadays, exahashes per second (EH/s), which is a much larger unit.
Over the past week, the total hashrate on the blockchain has approached its record-breaking peak, with a current 7-day average of 638 exahashes per second (EH/s) as depicted in the following chart. This figure represents the computational power required to validate transactions and create new blocks on the chain, and its recent elevated level is indicative of the network’s robustness and mining competition intensity.
One key aspect of the Bitcoin blockchain is that the average time it takes for miners to mine and add a new block to the chain stays around ten minutes.
The reason this characteristic is included is that miners earn block rewards for successfully resolving cryptocurrency blocks, which are essential for generating new tokens. By maintaining a consistent distribution of these blocks, the asset’s expansion stays balanced, and its inflation becomes foreseeable.
Regardless of how much hashrate miners contribute to the network, their mining speed for blocks won’t increase significantly over the long term.
At first, the additional computational capacity will allow miners to mine more cryptocurrency quickly. However, this advantage will only be temporary as the difficulty level of the blockchain will be adjusted biweekly. During these adjustments, the chain becomes more challenging for miners, effectively canceling out any benefits derived from increased power.
With the rewards being limited in this fashion, a rise in hashrate results in each unit receiving a smaller share of the rewards.
Whenever the total network hash rate rises, an individual miner must boost their mining power proportionally to keep pace with the competition on the blockchain.
I’ve observed that the value of “Hashcoin” tends to increase when the hashrate reaches higher levels. Given that the hashrate has been close to its all-time high (ATH) lately, it comes as no surprise that the price of Hashcoin has also remained relatively elevated.
As a crypto investor, I’ve noticed an impressive surge in Bitcoin’s hash rate, hitting a new all-time high (ATH). However, the hashrate itself has been relatively stable lately. So, what could have caused such a sudden and significant increase?
In simpler terms, the solution can be found in the fourth reduction, which took place on April 19th. While the Difficulty maintains a stable inflation rate for the asset, the Halving represents an intentional decrease in this rate.
As a researcher studying the Bitcoin network, I can explain that the block rewards get reduced by half during specific events that occur approximately every four years. This most recent occasion was no exception.
Due to the recent reduction of block rewards in half, miners are now able to generate merely half the number of tokens per day compared to before. Consequently, this has led to an increase in the demand for Hashcoins as miners require a greater computing power of approximately 1.13 Exahashes per second (EH/s) to mine a token daily.
BTC Price
At the time of writing, Bitcoin is trading at around $62,900, down 5% over the past week.
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2024-04-30 06:27