Hashrate Sets Record
For the first time ever, Bitcoin miners need more than 1 exahash per second (EH/s) of computing power to mine just one Bitcoin (BTC). This is a new all-time high for the “Hashcoin” indicator, which tracks the daily hashrate required to produce 1 BTC.
Constant Block Time
Bitcoin’s blockchain ensures that the time it takes to solve blocks remains constant at around 10 minutes. This means that miners cannot increase their block production speed by simply adding more hashrate.
Rewards Distribution
As the hashrate increases, the distribution of block rewards among miners becomes smaller. To remain competitive, individual miners must increase their power by the same percentage as the overall hashrate.
Halving Impact
The recent spike in the Hashcoin is due to the fourth Halving, which occurred in April 2020. The Halving reduces the block rewards by half, which means that miners can only produce half as much BTC as before.
Current Market Situation
At the time of writing, Bitcoin is trading at around $62,900, down 5% over the past week.
