Bitcoin hash rate recovers to new all-time highs

Bitcoin hash rate breaks another record as its price stabilizes after May crash.

After a brief slowdown in May, the Bitcoin network hash rate has recovered to new all-time highs. In total, miners now produce an average of 258 exhashes per second (EH/s) per day.

  • According to public hash rate data, the average daily hash rate increased by 4.41% in the last 24 hours alone. Just a week ago, the hash rate was as low as 188 EH/s, in other words, 188 quintillion hashes.
  • The previous hash rate record was set on May 2 at 251 EH/s, after which it started to drop. The drop coincided with the May crypto market crash that saw hundreds of billions of dollars disappear from the market, with one of the top ten cryptocurrencies crumbling to worthlessness.
  • Price and hash rate share a logical connection. As the price of Bitcoin falls, Bitcoin miners have less incentive to consume the energy needed to produce hashes.
  • Hashes are independent guesswork answers to the cryptographic problem needed to create each block of Bitcoin. When a correct hash is found and a block is created, the “miner” earns a reward of 6.25 Bitcoin and collects transaction fees for the block.
  • As the hash rate increases, the Bitcoin difficulty algorithm increases so that each block takes approximately 10 minutes to mine.
  • This process for creating blocks follows a consensus mechanism called “proof of work”, due to the energy or “work” that goes into securing the network.
  • Ethereum also operates using this method, but plans to transition to a mechanism called “proof of stake.” In theory, this will reduce the energy footprint of the network and increase scalability.
  • Bitcoin currently consumes an estimated 125 terawatt-hours of electricity each year, according to the Cambridge Index. That is much more than any other crypto network, and even some countries, like Finland.

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