Bitcoin (BTC) Hashrate Recovers Day After Crash
The drop in hashrate had nothing to do with the falling price of BTC, and was probably due to a facility going offline temporarily.
The Bitcoin (BTC) hashrate recovered after a one-day crash of nearly 30%, assuaging fears that the network is in trouble. BTC mining now happens at 94 EH/s, near the absolute peak just above 100 EH/s.
The drop in mining was considered a warning about the risks of pure proof-of-work. But even with the lower hashrate, it would be too expensive to attack the network. BTC still uses up as much electricity as Austria, due to the exponential growth of mining in the past six months.
BTC prices stabilized around $8,438.41. At this price level, mining with Antminer S17 is still profitable, though dramatically less so in comparison to June’s conditions. More competitive mining and a steady increase in difficulty lowered the potential reward even for the powerful model, and profitability is now hypothetically around $1,300 per year.
During the recent bout of mining growth, there were signs of Bitmain’s growing influence. The company opened large-scale mining farms, while its pools remained highly influential. Bitmain’s co-founder also returned to the public space. Jihan Wu is now working on Mars Finance, a Chinese cryptocurrency data outlet.
The general impression is that China is at the helm of mining, but other countries also host multiple ASIC farms. Data show that Georgia, due to its mountainous ranges and cooler climate, hosts up to 15% of Bitcoin’s hashing power.
Georgia is also a crypto-friendly country with a high interest in digital coins, as a source of solid currency in a struggling economy. Mongolia and Iran also rise up the ranks, though the governments of both countries have moved in to regulate mining. Mongolia has seen the closing of facilities, while Iran’s government ushered in a registration regime.
The Bitcoin network lost around 600 nodes in the past six months, from above 10,000 nodes to around 9,400. The network is busier these days, with above 848,000 transactions, including UTXO returns.