Bitcoin has set another hashrate record of at barely short of 150 exahashes every second — 150 with 18 zeroes. This is coming under 10 days before the 2020 bitcoin dividing.
The new hashrate is presently up around half since the beginning of the year.
The impacts of the hashrate flood are as of now apparent with square pilgrims enrolling 16 squares mined in one hour only days back. This is route over the six squares for each hour on normal the system is utilized to.
There has been some theory with regards to why this flood is going on now. A portion of the proposed contentions include:
- Launch and turning ON of the new Asics miners
- Cheaper electricity costs in the Sichuan province which accounts for more than 50% of the entire Bitcoin hashrate
- Increasing bitcoin price which translates to more revenue for miners
Breaking down the costs for miners, it is clear where this is heading.
Mining pools are already very competitive and earnings reduce over time. Mining rewards are calculated per terrahash per day.
Here are the numbers over time:
- Early 2018: 60 to 80 cents per terrahash per day
- April 2019: 44 cents per terrahash per day
- 2020: 15 cents per terrahash per day
Currently the break even costs to mine is about $4, 000 which means miners make about $4, 500 at the current bitcoin market price. This is up from the $2, 400 earnings about one year ago in 2019.
The upcoming halving is also most likely going to put smaller, less prepared miners out of business as rewards are cut by half.
According to Chun Wang, Co-founder and Managing Partner of F2Pool, the largest bitcoin mining pool in the world, controlling 20% of the collective computational energy, hashrate:
“Often, larger farms have better economies of scale and therefore are able to survive reductions in the mining reward or price volatility.”