[NEWS] Bitcoin hash rate hits all-time high

On the 21st, Bitcoin (BTC) hash rate exceeded 700 EH/s, a record high. Since the halving in April, Bitcoin's hash rate has increased by 13%, and supply is tight.

Hash rate refers to the computing power used for mining cryptocurrencies that use Proof of Work (PoW) as a consensus algorithm.

According to data from Blockchain.com, Bitcoin's hash rate has reached an unprecedented peak. The network's hash rate was 702 EH/s as of the 21st, exceeding the 700 EH/s mark.

The reason for the record high is US-listed mining companies. According to mining analyst Sebastian Ski, these mining companies accounted for 28.9% of the network's total hash rate as of September, accounting for more than 200 EH/s. Ski pointed out that these companies are gradually taking market share from other global mining companies.

Among them, CleanSpark, Marathon Digital, and Riot Platforms recorded the most significant hash rate increases over the past year. This is consistent with data showing that monthly production at these mining companies has been steadily increasing as of September.

Bitcoin mining remains a highly competitive and capital-intensive industry. In addition, operational risks increase as block rewards are halved approximately every four years. Mining companies with low economic and energy efficiency are forced to cease operations. This will benefit mining companies with low energy costs or strong financial backing.

Technological advances of listed mining companies

With Bitcoin's hash rate reaching an all-time high, the next difficulty adjustment is expected to increase by more than 4% on the 23rd of this month. The difficulty adjustment is made every 2,016 blocks, adjusting the mining difficulty so that one Bitcoin block is generated every 10 minutes.

The rise in hash rate will enhance both the security and efficiency of Bitcoin transactions. It also highlights the expanding role of publicly traded mining companies in the blockchain space.

As these mining companies improve their technology and operations, they will likely shape the future of Bitcoin mining, influencing market trends and how it operates.

Reference: Blockchain.com
Image: Shutterstock

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