Throughout October, Bitcoin’s hash rate increased by 10.8% and hit a new all-time high each day. While the increased hash rate will ensure greater security for the Bitcoin network, there are a number of factors affecting it. measure
The price of the excavator is lower.
The hash rate is related to the processing power that Bitcoin miners need to mine blocks. For this reason, a higher hash rate requires a stronger miner. This can help miners keep making profits.
As the global market recovers from chip shortages in 2022, the prices of graphics processing units (GPUs), the key components of mining rigs, are declining to more reasonable value. Miners can offset operating costs amid an ongoing bear market.
Additionally, major mining vendors such as Bitmain have also lowered their Antminers prices. However, the payback of miners can still take about 11 months for large miners and 15 months for small miners.
Bitcoin miners continue to take advantage of falling mining machine prices to upgrade their equipment. As they aim to remain competitive in the fiercely competitive arena, major crypto firms such as Grayscale have also revealed plans to invest in Bitcoin mining hardware.
The Rise of Crypto Friendly Countries
Since China banned crypto trading and mining, other countries have decided to help Chinese miners. by providing refuge in their own country
Countries including Kazakhstan, Canada and Germany are among the top choices for Bitcoin miners when it comes to moving their mines. As a result, Bitcoin mining is more decentralized as it is less reliant on China.
However, data from the Cambridge Center for Alternative Finance showthat China resumed mining operations just three months after the ban. As a result, the hash rate of Bitcoin has increased.
The United States currently has the highest Bitcoin hash rate, with Georgia leading 30.8%, followed by Texas (11.2%), Kentucky (10.9%) and New York (9.8%).
The Merge: Ethereum’s transition to Proof-of-stake
Ethereum has changed from From proof-of-work (PoW) to Proof-of-stake (PoS) after the Merge upgrade, and as a result, Ethereum no longer supports GPU mining.
The sudden change in mechanics forced Ethereum miners to sell or repurpose their equipment to mine other coins.
Despite the increased network security, the increased hash rate may be a cause for concern. As mining revenue in US dollar terms continues to struggle to recover amid the ongoing bear market.