A new historical record has been set for Bitcoin’s hashrate.
According to blockchain.com, the hashrate reached almost 126 EH/s on July 8th, 2020, breaking the previous pre-halving record.
In reality, other sources calculate different estimates, but they all agree that in the last few days Bitcoin’s hashrate has returned to its all-time high.
As expected, the halving has led to a significant reduction in hashrate, but this reduction lasted very little.
It was a decrease of about 30% compared to the maximum peaks reached before the halving, but after the reduction of the difficulty on May 20th, and then thanks to a further decrease at the beginning of June, the hashrate has been growing again.
In particular, starting from the end of June, there was a new small surge, which brought it back to an all-time high.
Taking bitinfocharts.com‘s extensive estimates as a reference, it can be seen that the profitability of mining is now relatively constant from the very day following the halving, i.e. May 12th, 2020.
It is very likely that this is the reason why miners are increasing the computational power allocated to Bitcoin.
Various factors, such as the difficulty, the efficiency of the new mining machines and the cost of electricity, have an impact on the hashrate, but all of them ultimately converge on the profitability of this activity.
Record-breaking hashrate, but mining is still profitable.
Profitability is at its lowest level ever, at about $0.08 per day for THash/s. Two months after the halving it remained at the same level it had on May 12th, which is low but still sufficient for mining to be profitable despite the high competition.
On the other hand, it is also plausible that many miners are competing for as many BTC as possible at the moment in view of a possible price increase in the coming months.
It should be borne in mind that, although the overall reward for the miners in BTC remains constant over time, its value in US dollars varies, and it is possible that some miners today may agree to extract BTC with low profitability in the hope that, by not selling them all at once, a certain amount will accumulate to be sold later, perhaps at a higher price.
In addition, over the last few days, such a high hashrate is keeping the block time constant under 10 minutes, and this would suggest a supposed increase in difficulty in about 12 days.
If this happens, mining profitability will drop further and it is possible that this will lead some miners to allocate some of their computing power elsewhere, or to shut down their machines.
Nevertheless, as has been well understood in recent months, Bitcoin mining is not a risky business, even when the mining reward for miners halves, as it did two months ago.