No matter how hard the bear has been attacking the other half of the crypto market, Bitcoin’s overall hash rate is experiencing an astonishing All Time High – rising almost 17% in the month of August alone.
Road to the moon
Wish this could have been in context of Bitcoin’s price – which is slipping down uncontrollably ($6273 ATOW) – however the happy news relates to Bitcoin’s Hash Rate which broke through 60 Quintillion hashes per second in August.
For the uninitiated, Hash Rate is the rate at which a Bitcoin mining machine solves the Bitcoin code. The code consists of complex algorithms and computations that need to be solved in order to acquire each block in the network.
In order to hit the correct answer for each thread of mathematical problem, hashes are hammered per second.
Denominations for a Hash Rate are:
- 1 KiloHash/s = 1,000 (one thousand) hashes per second
- 1 MegaHash/s = 1,000,000 (one million) hashes per second
- 1 GigaHash/s = 1,000,000,000 (one billion) hashes per second
- 1 TeraHash/s = 1,000,000,000,000 (one trillion) hashes per second
- 1 PetaHash/s = 1,000,000,000,000,000 (one quadrillion) hashes per second
- 1 ExaHash/s = 1,000,000,000,000,000,000 (one quintillion) hashes per second
August – being the historic month for the entire crypto sphere – saw Bitcoin’s Hash Rate shooting astronomically beyond the mark of 60 quintillion hashes per second!
The race for Hash Rate started off from a mark of mere 133 GigaHashes/sec during the initial years of Bitcoin’s launch. The ladder has since then grown only to be taller by each passing year.
Bitcoin dashed into 2018 with a price as high as US$19000 yet a hash rate of just 14 ExaHashes/sec. Within a span of just 8 months, this rate has rocketed to approx 250%.
Contrary to this soaring graph, the Hash Rate of other minable coins, under the Proof of Work protocol, are even yet to enter the PetaHash/sec ring except Bitcoin cash. A look…
Bitcoin mining rigs have swollen with many new pools joining in since the inception of Jan 2018.
As prevalent, Bitmain backed mining pool named BTC.com holds the lion’s share inside the pool distribution. However, the competitors are no less behind, with SlushPool gaining a stark 5% in the pool share.
Here’s a view of how the mining pools have changed their shape and size since past 1 Year –
Consequentially, Twitter was hurled with tweets as the Hash Rate went through the roof.
If mining investment is a way to purchase Bitcoin, then the spike in hash rate to an all time high means that the ultimate insiders with skin in the game, miners, are buying BTC: https://t.co/TE692iVrw4 pic.twitter.com/rv1ZlPALIP
— Donald McIntyre (@TokenHash) August 28, 2018
What is driving these miners anyway?
Long since the Bitcoin mining transited from GPU to ASIC mining machines, China has produced the major ASIC mining machine manufacturers, viz. ASICminers, Baikal, Bitmain, BW among others.
ASIC miner value also marks out the amount of profitability a miner can draw out of various mining machines. Below is a view of the profitability scale of a few top mining machines-
Miners are drawn towards a profitable ROI instinctively provided the cumbersome investment that flows into maintaining a mining rig.
Other factor pressing a direct influence over this mooning Hash Rate is the exploding Difficulty of the Bitcoin blockchain. The difficulty has multiplied exponentially during this year – whooshing with a 250% spike – rising correspondingly with the Hash Rate.
Besides the mining sphere, the recent Bitcoin ETF proposals knocking the doors of US SEC are also layering the hopes tied to Bitcoin’s bullish future. Thus far 9 Bitcoin ETF pleas have been rejected by SEC but the good news is that SEC approved 2 blockchain-themed ETFs this month – first of its kind.
Moreover, SEC also publishes a formal document elaborating the intricacies involved with approving a Bitcoin ETF, including those by SlodiX, VanEck and Bitcoin Trust.