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Highlights
- Bitcoin hashrate is growing and might continue to soar
- This piece discusses three reasons why the hashrate will not slowdown
- Among all, miner incentivation through diversification is key
The Bitcoin (BTC) hashrate, a measure of the total combined computational power used to mine and process transactions on the proof-of-work blockchain, has continued to grow. While this metric is crucial to gauge the adoption and network security level, many still wonder what will keep the BTC hashrate sustainable.
Since the Bitcoin halving, the difficulty to mine the coin has increased across the board. Despite this, the investment in mining has grown remarkably to date. This article explores three major reasons why the Bitcoin hashrate will surpass the current All-Time High (ATH) of 925 Eh/s.
Let’s dive in;
1, The Prospect of Bitcoin’s Profitability
Per the 7-day Moving Average, the BTC hashrate surpassed the 700 EH/s range. This marks a 13% surge since the halving event. Amid this trend, the hashprice rallied above $50 PH/s temporarily. With this statistics, the profitability in mining also soared to match with this cost.
While the Bitcoin halving reduced the rewards accruable to mining, miners are making up for this with fees. While the profitability is not at its peak yet, the projection is that it will keep growing despite the Bitcoin Hashrate. Additionally, the potential growth in the price of Bitcoin will also contribute to this profitability.
If this plays out as projected, it is the miners that remain operational that will benefit. This is enough incentive to keep plugging in machines that can push the metric higher.
2, Natural Selection Among Bitcoin Miners
The Bitcoin mining business is a very volatile one as it can sway based on market conditions. At a time during the crypto winter, many miners filed for bankruptcy as cost of operations far outweighs the profit.
This trend is bound to also play out in the long term. When this happens, many miners without proper established capital might go out of business. When this happens, surviving miners will have more motivation to increase their share and boost the Bitcoin hashrate in the long term.
3, Bitcoin Hashrate and Service Diversification
It is worth noting that Bitcoin miners are now exploring AI services. This pivot is mostly showcased in data center establishments, a viable way to boost their relevance and profitability.
Already, some Bitcoin mining giants like Marathon Digital are investing in AI data centers, a move analysts have noted is strategic in a fast-evolving world.
With this diversification, most Bitcoin miners adopting this trend have the motivation to add more miners, hence increasing the hashrate in the long term.
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