Bitcoin nears all-time hash rate highs

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The following is a direct excerpt from Marty’s Bent issue # 1124: “Approaching all hashrate records.” Sign up for the newsletter here.

via bitcoin.sipa.be

via insights.braiins.com

If the recent trend of Bitcoin network hashrate growth continues, we should see new all-time highs by the end of the year. It is an incredible development when you take the CCP’s ban on all mining operations in China in May of this year. At the time of the ban, many, including myself, speculated that hashrate wouldn’t fully recover until 2022. I’m happy to report that it seems a lot of us got it wrong. The Bitcoin network has proven to be extremely robust and dynamic.

Economic incentives are a hell of a drug. The rate at which economic players in the mining industry have moved to unplug, pack, ship and plug in miners is extremely impressive. Of course, the recovery was aided by new deliveries to the market as well, but the global coordination to find ASICs that have been forced to leave China in new homes cannot be overstated. A dormant miner is a physical option of future block rewards that is not taken advantage of. Every block that a miner misses is left on the table and extends the expected return of capital. With that in mind, operators worked day and night to find electricity and rack space to put those options back in place and produce. In the process, help restore network security to a location where it is much more difficult to attack the network.

At the moment, we are expected for an upward difficulty adjustment of 6.2% in 693 blocks.

via Clark Moody’s dashboard

If the hash rate stays static until the next adjustment (it won’t, but please appease my thought experiment), the difficulty will hit 23,720 470 143,610, which would be 5.2% of the all-time high. of May. It wouldn’t be surprising to see a new all-time high before the New Year. It will be something to watch out for in the coming weeks.

Bitcoin is so beautiful. One of the most powerful despotic regimes in the world tried to strike a blow at the network and barely gave in. It is very very very bullish and it has not yet been appreciated by the market.

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