Bitcoin’s hashrate hit a new all-time high on 1 January, according to data from CoinWarz.
Bitcoin the first record in 2022
For the first time in history, it exceeded 220 Ehash/s for about ten hours.
Taking BitInfoCharts‘ daily average data, it would have exceeded 200 Ehash/s for the first time in history both on January 1 and the following day, yesterday.
Previously, similar results had only been achieved on 13 May 2021, before the hashrate collapse due to the Chinese ban, when the price of BTC was around $50,000.
However, there are some differences.
Bitcoin’s record hashrate: a momentary spike
First of all, the levels reached on 13 May 2021 were lower than those of the past two days.
Furthermore, 1 and 2 January 2022 seem to have been a momentary peak, as the previous day’s average daily hashrate was even lower than 160 Eh/s, and today it seems to be around 180. In May, on the other hand, the growth seemed slower and more organic, since more than a month earlier it had already touched 190.
However, compared to 136 Eh/s a year ago, the overall increase was 49%. In the meantime, the price of BTC has risen from $30,000 to around $47,000.
However, if we take July 2021 values as a reference, the hashrate has grown by almost 200%, since it had collapsed to 68 Eh/s after the Chinese ban in mid-May.
Why Bitcoin’s hashrate has risen again
Given that the current price is similar to that of February 2021, for example, the reasons why Bitcoin’s hashrate has risen to new highs are to be found firstly in the slowness with which the hashrate adjusts to price growth, and secondly in the great rebound due to the relocation of much mining activity outside of China after the May ban.
It is enough to think that back in mid-August or so the price of BTC was around $47,000, but then the hashrate had only risen back up to around 130 Eh/s.
Since then, it has continued to grow, even though the price on average has not increased, first to return to May levels, and then to surpass them by leaps and bounds.
Meanwhile, the profitability of mining has fallen, from $0.45 per THash/s in September to the current $0.23, but the lowest peak in 2021 was reached in late June when it dropped to $0.17. This suggests that there could theoretically still be room for a further increase in the hashrate, provided the price remains at current levels.
Should the value of BTC increase, a further rise in the hashrate is very likely.
It remains to be seen whether at a time like this, miners would be better off selling the BTC they’ve cashed in, or holding on to it as a reserve, especially since with the profitability of mining declining, it’s quite possible that they would be better off selling it now.