Bitcoin Hashrate Hits 300 EH/s Mark as Industry Gets Some Breathing Room

The hashrate gained 100 EH/s within around one year, twice as fast as it went from 100 EH/s to 200 EH/s, data from Luxor Technologies shows. “It is a strong testimony of how institutionalized the industry has become,” said Head of Research at TheMinerMag Wolfie Zhao.

Beginning at the end of 2021, mining companies have secured significant loans to strengthen their mining capacity. This hyperloading the development of new mining sites, and the hashrate rapidly increased. However, the economy of the mining industry has also deteriorated significantly as a result of increased competition and, later, the down market – which has led to some of the largest companies in the industry going bankrupt.

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In recent weeks, the mining economy has gotten better, with the price of bitcoin. The hashprice, a measure of mining profitability, bounced back to over $70 per petahash/second (PH/s) from below $60/PH/s at the end of 2022.

With profitability on the horizon, miners—including those whose facilities are less efficient—have reconnected their machines to cope with market headwinds.

At the cost of electricity of $0.06/kilowatt-hour (kwh), 'Equipment with an efficiency of 50d/th is now cost-effective compared to one month ago, equipment with an effectiveness of 40j/th could hardly generate a significant benefit," zhao said.

"legacy engagements" and enhanced deployment of new engagements, More effective and powerful machines explain the network's growth, has drafted analysts of the investment bank b. riley in a note to investors on January. 31.

But 2022's turbo growth will never happen again: The global deterioration of the mining economy will put a brake on the growth rate of the hashrate next year, according to analysts.

"While it took less than a year to hack Bitcoin to grow from 200 to 300 EH/s, it's probably going to take a lot longer for him to break 400 EH/s. I'm confident that we're going to finish 2023 with less than 350 EH/s, the poor economic performance of the mining industry in 2022 has not been conducive to new investment," said Jaran Mellerud, Mining Services Analyst Luxor Technologies told.

D.A. Davidson analyst Chris Brendler said that, given today's Bitcoin prices, the growth of the network is "here to stay" in a January. 31 Investor Ratings. Because of a recent decline in the price of natural gas, which means a decrease in the price of electricity for miners. The analyst predicts that the hashrate will hit 363 EH/s in late 2023.