Mining Hardware Pre-Orders Decline, But Bitcoin Hashrate Hits New All-Time High with 9% Surge
Miner Mag reports that after the pre-halving spike, pre-orders for mining hardware have started to fall. Analysts currently anticipate a slowing in hashrate increase, despite the fact that many mining companies had prepared for this occurrence by stockpiling equipment to keep their operations competitive.
Greater network security is indicated by a higher hashrate, which quantifies the processing power required to mine the Bitcoin network. According to Glassnode data, the hashrate of Bitcoin has increased to yet another all-time high, with the seven-day moving average leaping to 833 exahashes per second (EH/s). Compared to 767 EH/s in the previous few days, this indicates a 9% rise.
Bitcoin Mining Expands Despite Low Fees and Declining Transaction Revenue
The Miner Mag claims that institutional investment in mining infrastructure has been a major factor in the network’s notable hashrate increase over the last 18 months. The spike came before the April 2024 halving of bitcoin, which lowers the block reward by 50% and happens roughly every four years. The hashrate has grown by almost 40% after the halving, suggesting that mining operations are still growing.
In recent months, mining profitability has remained largely unchanged, coinciding with the hashrate increase. The historically low transaction fees that have lowered miner revenue are one of the main causes of this. A high-priority transaction in the Bitcoin mempool only costs 5 sat/vB ($0.69), which is among the lowest fee levels in recent years. Miners are making less money from transaction fees as a result of fewer transactions, which makes it more difficult to cover operating expenses.
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