In a significant milestone, data on BitInfoCharts revealed that Bitcoin’s network hashrate has surged to an unprecedented 769.8 exahashes per second (EH/s), surpassing its previous peak and establishing a new benchmark.
Bitcoin Hashrate Surge Boosts Network Security
Bitcoin hashrate measures the total computational power of all miners on the network used to secure the Bitcoin network, validate transactions, and mine new bitcoins. The metric is calculated in exahashes per second (EH/s), with higher rates indicating greater network security.
Bitcoin’s latest hashrate record of 769.8 EH/s, a 13% growth since April’s halving event, indicates the network’s increased security. A higher hashrate makes it more difficult for attackers to breach the network, ensuring the integrity of the blockchain.
In addition, a higher hashrate increases Bitcoin’s network resilience against 51% attacks, making it more challenging for malicious actors to launch such assaults, thus, reinforcing its decentralized architecture.
Hashrate Hike Spells Doom for Crypto’s Little Guys
As Bitcoin’s hashrate records new highs, the network’s security improves, but miners face increasing competition and dwindling profits. This development could trigger a shakeout of inefficient and smaller mining firms, leading to consolidation and migration to low-cost energy centers.
Following the Bitcoin halving in April, which slashed block rewards to 3.125 BTC, mining costs surged, making it increasingly challenging for miners.
In August, bitcoin miners’ revenue plummeted by 10.5% to $827.56 million, a significant drop from July’s $927.35 million.
Bitcoin mining totals also fell in August, with 13,843 BTC mined, down 5.9% from July’s 14,725 BTC, despite strong showings from mining firms Foundry USA and Antpool. The former dominated with 1,240 blocks, capturing 30% of the market, while the latter followed closely with 1,074 blocks, accounting for 25.04%.
Last month, Bitcoin Miner Cathedra, announced its plans to temporarily halt its Bitcoin mining operations, diversify into data center development and operation, and redirect its realized profits to enhance its Bitcoin portfolio through targeted acquisitions and investments.
According to the firm, its decision to pause mining operations is a strategic response to the 2024 Bitcoin halving’s reward reduction, which diminished bitcoin acquisitions for investors, prompting exploration of alternative methods to boost shareholder bitcoin per share.
Following in the footsteps of U.S. bitcoin mining firm Marathon Digital, Cathedra plans to expand its holdings through regular buys.
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