Bitcoin is getting closer to the coveted $100,000 mark, and its mining power is exploding! Let’s break down what’s happening.
What is Hashrate?
The “hashrate” measures the total computing power used by Bitcoin miners. Think of it as the collective muscle of all the computers working to secure the Bitcoin network. It’s measured in terahashes per second (TH/s). Miners compete to solve complex math problems, and the winner gets to add the next “block” of transactions to the blockchain and earns Bitcoin as a reward. A higher hashrate means more miners are participating and the network is more secure.
Mining Power on the Rise
Recently, the 7-day average Bitcoin hashrate has skyrocketed, hitting a new all-time high of over 768 TH/s! This shows that miners are investing heavily in their operations, likely because they see Bitcoin as a profitable venture.
Earlier this month, the hashrate briefly dipped despite Bitcoin’s price increasing. This was a bit of a surprise, suggesting miners might have been hesitant about the price surge. But with Bitcoin now nearing $100,000, the hashrate is back to breaking records, showing renewed confidence in the market.
Why the Surge?
Miners earn Bitcoin in two ways: transaction fees and the “block subsidy” (a fixed amount of Bitcoin given for each block added). The block subsidy is the main source of income. Since the amount of Bitcoin given as a subsidy is relatively constant, the only thing that significantly affects miner profitability is the price of Bitcoin itself. Higher Bitcoin prices mean higher profits for miners, leading them to invest more in their mining operations and increase the hashrate.
Bitcoin Price Update
At the time of writing, Bitcoin is trading around $98,000, a more than 9% increase over the past week. This price surge is likely a major factor driving the record-breaking hashrate.
