New Record Set By Bitcoin Hash Rate in 8 Days From Halving
May 4, 2020 4:42 am
On May 3, the Bitcoin (BTC) hash rate posted a new all-time high (ATH) of higher than 150 Exahashes per second (EX/s) in just eight days from the halving and after the mid-March price crash by 40% over two weeks, started to a small journey of miners operating older hardware. The new record knocks out the previous ATH of 123 EX/s posted on March 8 and is now up around 50% since the start of the year.
Third BTC Halving
The BTC mining hash rate is against pushing into record highs, with the Bitcoin’s third halving event which is merely days away. BTC hash power crashed 40% in two weeks after setting its earlier ATH on March 8, falling from 123 EX/s to just 75 EX/s.
Though, with prices rebounding, the following six weeks saw hash rate gain 90% with analysts estimating that a combination of rising crypto prices and the coming obelise of many older ASICs among the halving have contributed to hash power nearly doubling in less than two months.
A Healthy Rebalance
The head of research and analytics at TokenInsight, Johnson Xu, prophesied that soon after the halving occurs “a large percentage of older generation miners such as S9s will be shut down”.
Despite the disruptions the halving event has on the mining sector, Johnson explains the halving as “a healthy rebalance to force the network to re-adjust itself into an efficient network where miners can make sufficient margin and the bitcoin halving will result in the network in short term chaos, however, once the difficulty adjustment kicks in and self-adjust to an equilibrium state, we will see the bitcoin network back to a stable position quickly.”
The forthcoming halving is probably going to put smaller and less prepared miners out of business as rewards are decreased by half. Per Co-founder and Managing Partner of F2Pool, Chun Wang, the biggest bitcoin mining pool in the world, controlling 20% of the collective computational energy, hash rate:
“Often, larger farms have better economies of scale and therefore are able to survive reductions in the mining reward or price volatility.”
With the new Binance Pool, Binance is getting onto the bitcoin and crypto mining space which is expected to account for about 2% hash rate market share, after this halving event, it will be intriguing to see how these emerging mining pools affect the network and ecosystem.