More People Mining Bitcoin Than Ever Before!
Bitcoin’s Overwhelming Power!
Despite the Bitcoin price still being over 50% down from all-time highs at the time of writing, it appears the hash rate of the Bitcoin network is higher than ever, reaching a staggering 30,000 PH/s over the weekend!
Bitcoin is the undisputed king of all cryptocurrencies in terms of its processing power. To put it into perspective, let’s look at Bitcoin Cash, Ethereum, and Litecoin’s hash rates.
Bitcoin Cash has an impressive 2,000-3,000 PH/s
Ethereum has a stable rate of 250 TH/s
Litecoin is on par with Ethereum, but more volatile, from 200-250 TH/s
(Disclaimer: Each respective cryptocurrency has its own unique difficulty levels and protocols for mining)
1 KH/s is 1,000 (one thousand) hashes per second.
1 MH/s is 1,000,000 (one million) hashes per second.
1 GH/s is 1,000,000,000 (one billion) hashes per second.
1 TH/s is 1,000,000,000,000 (one trillion) hashes per second.
1 PH/s is 1,000,000,000,000,000 (one quadrillion) hashes per second.
1 EH/s is 1,000,000,000,000,000,000 (one quintillion) hashes per second.
1 ZH/s is 1,000,000,000,000,000,000,000 (one sextillion) hashes per second.
Hash rate is a term used frequently in the blockchain space. It is used to measure the speed of the machines working on solving mathematical equations that enable the confirmation of blocks, which store transactional data inside them.
The more hashing power a “miner” has, the higher chance of solving the equation, thus confirming the block on the network. As of this writing, the reward starts at a base of 12.5 BTC per block.
Mining Those Cheap Bitcoins!
During the last cryptocurrency bear market, many of the flagship mining pools that now dominate the industry began setting up shop. This proved to be a smart move, as the price began to appreciate in 2016.
Mining in a downtrend, which bottomed out in the $200-$300 region, meant that early-bird miners made over 100x on their holdings, despite mining Bitcoin in a downward cycle and at a loss for well over a year. The term for this is “mining at a loss.”
It seems history is repeating. With a market correction of at least 70% across the markets, long-term thinkers are committing their resources to mining digital assets. The process of mining is expensive, time consuming, and requires a great deal of technical competence.
If this downtrend continues, it’s likely that many will be mining at a loss, but they are also preparing for the next bull market – a smart economic decision if it works!
Hash Rate Distribution
The politics behind Bitcoin’s mining community have been passionately debated since the emergence of the technology itself, with many saying there are elements of centralization in Bitcoin through the dominance of a select group of mining pools (many from China) that wield the majority of power on the Bitcoin network.
Although China is well-known for its cryptocurrency mining dominance, other countries are beginning to catch up. Crypto-friendly nations and regions such as Canada, Russia, and Scandinavia look to be the next safe havens for digital mining.
This is due to the ideal conditions, resources, and vast amounts of land, with rumors of governments heavily researching the process of mining cryptocurrencies and the proof-of-work algorithm.
Could we see institutions and governments openly mine cryptocurrencies as a way to generate wealth? Unbankable nations with untapped resources could generate value and create an industry within their own borders without the assistance or interference of the corporate West.
This would ultimately push out the average person, or at least push them to less popular or difficult-to-mine cryptocurrencies. It seems like mineable blockchains that utilize the proof-of-work algorithm are here to stay!