Bitcoin Mining Power Has Set a Record

Bitcoin enters the new year with a new all-time high (ATH) hash rate record.

Despite price volatility and the upcoming miner reward halving, the “king of crypto” was able to attain an ATH hash rate.

According to a report, the hash rate was computed based on a seven-day average. The record shows that the hash rate increased from about 93 exahashes per second (EH/s) on December 30, 2019, to over 106 (January 5, 2020).

That said, the first of January was an exceptional day. Bitcoin’s hash rate reached 119 EH/s, surpassing its last record of 114 EH/s (October 2019).

Besides, compared to the outset of 2019 Bitcoin’s hash rate has grown from 40EH/s to 80EH/s 2020.

What is hash rate?

For the uninitiated, hash rate is the amount of processing power available on a blockchain. When a blockchain network has a high hash rate, it means there are more miners on the network. Its economic value, therefore, is also higher. 

Due to computing difficulties, BTC’s hash rate has been modified to ensure block time does not exceed its 10-minute mark. This is irrespective of the number of active miners on the network. To make this possible, it automatically adjusts itself once every two weeks. The last instance occurred on January 1, 2020, when it increased by 6.75%

Tough season for miners

Due to the 2018 bearish market, at one point many miners found themselves in dire straits. Thus, multiple companies had to close up shop; only huge mining companies managed to stay in business. Many countries have also launched a battle against mining. For instance, China stated plainly that it would no longer tolerate mining.

As the bear market recedes, it seems mining is coming through again. Over 500,000 new ASIC rigs are believed to have gone live in Q3 2019. U.K.-listed mining firm Argo Blockchain also recently obtained over 3,600 new bitcoin ASICs.

Overall, 2020 will be undoubtedly an eventful year for Bitcoin. Personally, I think it’s the onset of the decade that will make crypto ubiquitous.