The collective computing power supporting the Bitcoin network has just hit a new all-time high. Evidently, the recent dips in the price of the number one digital asset have not perturbed those in the mining industry.
Despite Bitcoin prices tumbling in the last few days, the asset’s mining industry continues to expand. According to data from Blockchain.com, the network’s hashrate is now more than a massive 114,342,000 TH/s. Although hashrate does not move up or down in a linear fashion, there has been a clear upward trend to the metric throughout 2019.
With prices a long way from the December 2017 all-time high of near $20,000 and even the June 2019 yearly high of almost $14,000, it is something of a surprise to see miners so obviously bullish on Bitcoin. However, as Twitter cryptocurrency analysis account Skew (@skew_markets) points out, the impending Bitcoin halving event, expected next May, will soon effectively double the cost of Bitcoin production. If miners planned to add hashing power to the network at any point during the next year or so, it makes the most sense to do so prior to the cutting of Bitcoin supply.
Bitcoin hash rate continues to make new highs despite the weaker market
Consuming ~3x+ more electricity than when BTC peaked in Q4 2017 – ~80 TWh annually
Marginal production cost of 1 BTC excluding hardware ~$5,260 currently & will double next yr post halving… pic.twitter.com/a373uTX2p0
— skew (@skewdotcom) October 24, 2019
Adding to the recent surge in the Bitcoin hashrate could very well be the new facility by Chinese mining giant Bitmain. BeInCrypto reported on the opening of the 50 MW facility in Texas earlier this week. The mining hardware manufacturer says that the facility will one day have a capacity of 300 MW, making it the largest on the planet.
Similarly, blockchain startup Layer 1 has just raised $50 million to fund its own Texas mining facility. With US entrepreneur Peter Thiel as one of its primary investors, the company’s goal is an all-in-house Bitcoin mining operation. As well as manufacturing hardware itself, the facility will have its own power substation and the firm is working on innovative cooling technologies.
Typically, Bitcoin miners have preferred colder climates since hardware needs running day and night, often tightly packed together in large containers. The fact that Bitmain and Layer 1 are both opting to set up shop in infamously one of the hottest states in the US speaks volumes about the cost of the electricity they will be used to power their mining rigs.
Images are courtesy of Twitter, Shutterstock, Blockchain.info.
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