Bitcoin Hashrate Hits All-time High as Price Dwindles

The benchmark metric of miners confidence in the Bitcoin network established its all-time high on Thursday.

Hashrate, which reflects the processing power of the Bitcoin network, reached almost 103 trillion ‘tera’ hashes per second. It showed that more miners are employing their computers to create and “hash” a block of verified transactions before adding them to the ever-growing string of blocks, called blockchain. In simple words, miners saw profits while verifying and validating transactions on the Bitcoin blockchain. It, in turn, prompted them to increase their operational expenditure (typically, electricity input) on the network.

Miner(s) currently receives 12.5 BTC for completing a block. The cost of each bitcoin is presently fluctuating around $10,000. It means each confirmed Bitcoin block returns miners with almost $125,000.

According to CoinShares, it takes miners about $6,500 to mine one bitcoin. That shows that miners – as of now – could at least make a profit of $3,500 collectively, which prompts them to join the Bitcoin network. Overall, that leads to an increase in hashrate, meaning more miners are now competing with each other to validate blocks on the Bitcoin blockchain.

Miners are HODLERS

The surge in Bitcoin hashrate followed an impressive price recovery in the BTC market. The cryptocurrency surged by more than 170 percent on a year-to-date basis while its bottom-rebound resulted in a 200-percent profit for investors. That typically helped miners – the producers – to meet their breakeven mining costs – and in some cases, even accumulate bitcoin as speculative investments. Source...

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