A CryptoQuant analyst has shared a chart for the Bitcoin mining hashrate and has termed it the “most impressive in the world of BTC.”
14-Day SMA Bitcoin Mining Hashrate The Most Impressive Chart For This Quant
The “mining hashrate” refers to a metric that keeps track of the total computing power the miners have currently connected to the Bitcoin blockchain.
When this metric goes up, the existing miners will expand their facilities, and new ones will join the network. Such a trend implies that these chain validators are finding the blockchain attractive to mine right now.
On the other hand, a decline in the indicator suggests some miners are disconnecting their rigs from Bitcoin, potentially because they are finding the coin unprofitable.
In a new post on X, the CryptoQuant Netherlands community manager Maartunn has shared the 14-day simple moving average (SMA) of this BTC indicator, stating, “this chart continues to stand out as the most impressive one in the world of Bitcoin.”
The value of the metric has been only been growing more sharper recently | Source: @JA_Maartun on X
From the graph, it’s visible that the Bitcoin mining hashrate has not only been going up throughout the history of the cryptocurrency but has also been displaying acceleration, which is impressive when considering how the BTC network works.
The miners’ main source of revenue over the years has been the block rewards, which are given out when these chain validators solve blocks. These rewards are released at a near-consistent rate and are fixed in BTC value.
This remains true irrespective of how many miners join the network (thanks to the concept of mining difficulty), so as the hashrate has been going up, the individual pieces of the pie that the miners are getting smaller.
Not just that, the asset also has periodic halving events taking place approximately every four years that slash the block rewards permanently in half, so the revenue is only getting tighter in this sense.
Regardless of this, miners are continuing to add more mining rigs to the network. The reason behind this is that even though the rewards may be constrained tightly in terms of BTC, the USD value of the rewards has shot up as the cryptocurrency’s price has exploded.
Mining machines have also become much more powerful and efficient with time, allowing miners to expand their hashrate quickly. Bitcoin mining company Bitfarms has recently revealed new facility upgrades, aiming to almost triple its computing power by the second half of 2024.
The accelerating hashrate growth that the Bitcoin network has observed showcases just how competitive and cutthroat the mining industry has become, as any miners failing to keep up with the network increase would only fall down the ladder and gain access to fewer rewards.
BTC Price
At the time of writing, Bitcoin is trading at around $37,500, up 1% in the past week.
Looks like BTC hasn't moved much in the last few days | Source: BTCUSD on TradingView