It has been reported that the Bitcoin hashrate is growing again and is even triple what it was at the end of June 2021. As many market analysts have pointed out, the Bitcoin hashrate may reach a new record within two months if the growth continues.
Bitcoin Hashrate is Growing in August 2021
Since June 2021, when Bitcoin’s hashrate dropped to 52 exhashes per second, Bitcoin’s hashrate has tripled, according to Coin Telegraph and other publications. The growth rate of the Bitcoin hash rate is something that has been noticed a number of times over the past couple of months. In the end, the average speed reached 152 EH/s on August 24, 2021.
A new all-time high could be reached in the next two months if Bitcoin’s hash rate retains its current momentum. It has been gradually returning to levels experienced in early June 2021.
Bitcoin hashrate dropped Multiple Times
In accordance with BitInfoCharts, on May 13, 2021, the Bitcoin hashrate is growing and reached a new record high of 197.6 EH/s.
The stock price fell more than 65% over the next 6 weeks as mining operations in China were forced to shut down or relocate as the Chinese government tightened control over mining around the country.
The difficulties in the mining industry have recorded 4 consecutive downward adjustments by the end of the week of July 12, 2021.
The End of El Dorado for North American Miners?
North American miners have reaped the benefits of this hash rate drop, such as Marathon Digital, which is able to continue mining Bitcoin at lower prices.
As a result of the shutdown of Chinese miners, Marathon Digital hopes to be able to increase the capacity of its mining fleet through the purchase of new supercomputers.
This can be taken as an indication that the migration of miners to the network is at an end as the network’s hash rate has now been restored. In the month of August 2021, there was an increase in mining difficulty of approximately 7%.
The Bitcoin market has survived the Chinese government’s hunt for Bitcoin miners. A lot of Bitcoin mining farms seem to be popping up in North America at the moment, while other countries such as Ukraine and Spain are tightening up regulations to stop fraudulent mining operations.
As of September 2021, Iran’s temporary mining ban will be over in full effect, a ban whose official purpose was to provide electricity to the country’s population during the summer months. As a consequence, these difficulties are expected to spike dramatically.
Why is the Mining Difficulty of Bitcoin important?
The mining process becomes cheaper when Bitcoin becomes easier to mine. This reduces the amount of energy used, making it more efficient. Using the same computational power, they are able to mine more than before and are thus improving the chances to strike gold – or in this case, Bitcoin – more often.
There is a strong likelihood that as the difficulty of mining Bitcoin increases, in turn, it will be harder for miners to hit the jackpot, which will surely result in a smaller margin of profit as well.
If the Bitcoin hashrate is growing, the difficulty of mining a block of Bitcoin also increases. Since more and more miners are trying simultaneously, Bitcoin’s in-built algorithm automatically makes it harder to unlock a block.
The measure helps in controlling the supply of coins and prevents a sudden flow of too many of them. For the community, it’s a positive indicator as it means the network is recovering from its pitfall.
However, for individual miners, it spells bad news as they will have to spend more time mining a coin than earlier.
There are many reasons why the Bitcoin Hashrate is growing. One reason may be because companies like URBT launches mining operations which indicate that there is still a profit in Bitcoin mining. Another reason may be China’s ban on miners.