The data power dedicated to the mining of bitcoin has hit yet another height, suggesting that more than 600,000 powerful new machines may have come online in the last three months.
According to data from crypto mining pool BTC.com, bitcoin's two-week average hash rate has crossed another high threshold, reaching 85 exhash per second (EH / s) around 7:00 PM UTC last Friday. Meanwhile, mining difficulties also adjusted to a new record of nearly 12 trillion.
In particular, both numbers have jumped 60 percent since June 14, data shows.
Bitcoin's mining problems – a measure of how difficult it is to make a block of transactions – are adjusted to 2,016 blocks, or about every other week. This is to ensure that the time to produce a block remains around 1
Several new models of application-specific integrated circuit (ASIC) miners hit the market over the summer, with an average hash power of around 55 tera hash per second (TH / s).
Assuming that all of the 35 EH / s new hash power added since mid-June came from these top models, an estimate on the back of the envelope suggests that more than half a million such machines have connected to the bitcoin network. (1 EH / s = 1 million TH / s)
Billion dollar business?
These powerful ASIC miners, made by major manufacturers such as Bitmain, Canaan, InnoSilicon and MicroBT, are priced from $ 1,500 to $ 2,500 each. So if more than half a million of them were delivered, as estimated above, the leading miners could have made $ 1 billion in revenue over the last three months.
Bitcoin's spike hashrate and difficulties are in line with the rising price since earlier this year, which led to growing demand for mining equipment that has surpassed the supply significantly. It's also partly thanks to the rainy summer season in southwestern China that resulted in cheap, plentiful hydropower.
Furthermore, there has also been a growing interest in Russia's East Siberia region, where the Brastsk hydroelectric power station built during the Cold War era has been used to power mining companies estimated to account for nearly 10 percent of the total data power of the bitcoin network. .
Miners in China estimated earlier this year that bitcoin's average hash rate in the summer would break the 70 EH / s level, which happened in August.
As such, major mining manufacturers have already sold out equipment to be shipped to the end of the year with customers placing pre-orders three months in advance.
TokenInsight, a startup focused on crypto-trading and mining analysis, said in a report released Friday that further supplies of miners are expected to hit the market in the upcoming mont hs.
“Following the drastic increase in the bitcoin price, the bitcoin mining market saw significant inflation in Q2 2019. Most miners from various manufacturers were in serious shortage and advance orders sent in Q2 and Q3, should be delivered by the end of the year, "the report states.
Therefore, the company estimates mining problems will sustain its growth momentum to reach 15 trillion by the end of the year – with bitcoin's average total hash power exceeding the 100 EH / s threshold for the first time in its history.
Image of Bitcoin mining courtesy of Bcause