The post 18 Month Bitcoin Hashrate Rising Streak Ends appeared on BitcoinEthereumNews.com.

After 18 months of continuous uptrend in the Bitcoin network’s hashrates, June saw a decline. While several theories emerge about the cause of the phenomenon, it looks like miners with older ASIC systems (specialized mining rigs) are disconnecting from the network because it is no longer profitable. Thus, the reduction in the total hashrate of the network. Bitcoin’s hashrate, which has currently dropped to 600 exahashes, is the processing power miners need to solve a cryptographic puzzle to build the next block on the network. More miners joining the network leads to an increase in its hashrate. The opposite also applies, explaining how miners leaving has led to the drop in Bitcoin’s hashrate after 18 long months. Hashrate in the hundreds of exahashes require immense energy that mining equipment consume to earn mining rewards. Those with old-generation ASICs are no longer finding it profitable to mine after April’s Bitcoin halving. Their rewards were essentially slashed in half. Compared to competitors with newer mining rigs, the miners disconnecting from the network expend way more electrical energy because of older technology. So, the latest halving has reduced any profits they can see from each block, thus removing the incentives for them to participate with their existing rigs. An X post by Hashrate Index describes it technically, “S19 XP & M50S++ will operate at a loss if the hash cost rises >$0.09/kWh. >$0.08/kWh k Pros & M50S+ will be unprofitable. And at $0.06-$0.07/kWh the S19j Pro+, j Pros, and M30S++ will struggle.” All miners using ASIC models like S19 XP and M50S++ have begun disconnecting since it makes no monetary sense to mine. However, the drop in Bitcoin’s hashrate is temporary. These miners will return with new mining equipment, and the attractive price rises of bitcoin will draw new miners, too, increasing the…

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Filed under: News - @ June 16, 2024 2:26 pm