The Bitcoin network is showing its strength. On October 21, the hashrate climbed to a new record of 769.8 exahashes per second (EH/s). If you’re wondering why this matters, a higher hashrate generally means a safer and more stable network. That’s good news for anyone involved in Bitcoin.
Why Do We Care About the Hashrate?
The hashrate measures how much computing power is used to verify transactions and add new blocks to the Bitcoin blockchain. The more power the network has, the harder it is for anyone to try and manipulate or attack it. For example, a 51% attack—where a bad actor gains control of over half the computing power—becomes less likely when the hashrate is high. So, more participants verifying transactions means a lower risk of fraud or interference, which boosts Bitcoin’s overall security.
What’s Driving the Hashrate Increase?
The trend of rising hashrate isn’t new. We’ve been seeing this upward movement since 2021, and it continues to grow. Data from BitInfoCharts shows that improved mining hardware plays a big part in this rise. We’re talking about specialized chips known as application-specific integrated circuits (ASICs), designed to mine Bitcoin more efficiently. These devices have made it easier for miners to contribute more power to the network.
Challenges Ahead for Miners
Now, while a higher hashrate boosts network security, it also makes Bitcoin mining more expensive. This brings us to a tricky balancing act between the cost of mining and the market price of Bitcoin. After the 2024 block reward halving, where the reward for mining a block was cut in half, some smaller mining companies have felt the pinch. Less efficient equipment just isn’t profitable anymore, which has forced some miners to rethink their strategies or even close shop.
Miners Holding Onto Their Bitcoin
Even with the rising costs, miners aren’t rushing to sell their Bitcoin. On October 20, only 2,916 BTC was sent to crypto exchanges, marking one of the lowest sales days over the past month. This low volume of sales suggests that miners are confident in Bitcoin’s future value. Rather than selling now, they seem content to hold onto their reserves, hoping for a better price down the line.