What determines the Bitcoin hash
The main digital coin is like a living organism. His work depends on many factors, one of which is crucial.
In July, the Bitcoin hash has updated its historical maximum at 79.7 EH / s, over the past six months, this figure has doubled, and since December 2017, when the coin was trading at a record high of $ 20,000, eight. An indicator that determines the total amount of computing power that is used to extract the first cryptocurrency is important for the normal functioning of the system.
The hashrate performs the function of immunity in the body of the cryptocurrency – it determines the security of the network at the moment. Now attacks on the blockchain of the coin and its transactions will cost a million dollars every hour, said Ludtrip Founder Mikhail Khudokormov. Hundreds of millions of dollars will be required in order to “roll back several transactions,” which is extremely unprofitable and does not make sense, the expert believes.
From the point of view of mining, an increase in the hashrate leads to an increase in the complexity of the network, which means that the profitability for each device decreases, said Dmitry Shuvaev, Director of Development of the infrastructure and mining company BitCluster. He added that the next important indicator that affects the profitability of devices is electricity.
“If the decline in the cost of bitcoin continues, the miners who place the equipment in places with expensive electricity will begin to turn off their devices,” Shuvaev explained.
According to the expert, this will lead to a decrease in hashrate and complexity, but an increase in profitability from each device.
In order for the network to remain secure, the Bitcoin exchange rate must be above the breakeven point. When the price of a coin falls below or approaches this mark, it is easier for many cryptocurrency miners to turn off the equipment until better times, which happened at the end of last year.
By early December 2018, the Bitcoin hash rate decreased by 31%, and BitMEX researchers linked this event with the disconnection of about 1.3 million Antminer S9 devices from Bitmain. At the same time, in November, entrepreneurs from China disconnected from 600 thousand to 800 thousand Antminer T9 + devices from Bitmain and AvalonMiner 741 from Canaan Creative. Then the asset rate moved towards a local minimum of $ 3400.
Now the situation is completely different – it is almost impossible to buy a miner at the price officially announced by the manufacturer, and it takes months to wait for delivery, said Anton Makarchuk, marketing director at CryptoUniverse.io. He added that the hashrate characterizes the mood of the market as a whole.
The increase in the indicator suggests that equipment manufacturers do not stop releasing new miners. INNOSILICON, BITMAIN, Canaan and other market players are betting on the development of production and increase the efficiency of ASICs, because they believe in the prospect of mining, the expert noted.
However, the indicator depends not only on the value of the cryptocurrency. The global trend to increase hashrate in 2019 is also due to the upcoming halving on the coin network, Khudokormov emphasized.
In his opinion, miners are now trying to get as much as possible before halving the reward for the mined block. Founder Letstrip suggested that, until May 2020, growth and increased security of the system are also inevitable due to relatively low transaction fees.