The post Riot in crisis, hashrate too high appeared on BitcoinEthereumNews.com.

Riot Platforms (RIOT), among the leading companies involved in Bitcoin mining, revealed a loss in the second quarter of 2024 tripled compared to the previous year, due to the still too high hashrate.  The cause: the halving On April 20th, twenty days after the beginning of the second quarter of 2024, there was the fourth halving of Bitcoin.  This halving has suddenly halved the reward for the miners who mine the new blocks of the blockchain of Bitcoin, reducing it from 6.25 BTC to 3.125. Although the miners also collect the fees, which have not decreased, the halving has suddenly reduced their revenues significantly.  The event was scheduled and well known for a long time, but what was not known was by how much the hashrate would decrease.  The problem of hashrate: Bitcoin mining companies like Riot start to suffer The Bitcoin mining is in all respects a competition that rewards especially those who have greater computing power. In the field of crypto mining, computing power is called hashrate, and it is measured by the number of hashes that can be extracted (randomly) every second.  The higher the overall hashrate of all the miners in the world, the lower the probability percentage of individual miners to successfully mine blocks.  To increase the probability of mining blocks, a single miner must have the highest possible hashrate, but increasing the hashrate also means increasing costs, as computing power consumes a lot of electrical energy.  When revenues decrease, inevitably miners must also reduce costs if they want to remain profitable, and they can only do this by reducing the hashrate.  The reduction of the hashrate post-halving Taking as a reference the weekly averages, the all-time high peak was reached precisely on the day of the halving, at 650 Eh/s.  In the following days,…

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Filed under: News - @ August 2, 2024 1:18 am