Bitcoin (BTC) Mining Returns with a Vengeance
Just a day after a worrying crash in mining activity, the Bitcoin network set a new hashing record, at above 101 EH/s.
Bitcoin (BTC) mining returned to its exponential growth, just a day after a sudden 30% drop. The lowered activity, however, proved temporary. Just a day later, the hashrate was already recovering and set on a new record.
The Bitcoin network made 101 quintillion hashing operations per second, for a rate of 101 EH/s, another absolute record in the series from the past six months. The growth in mining happens about 10 days before the next difficulty recalculation.
Dovey Wan, the co-founder of Primitive Crypto, had observations on the recent behavior of miners. Wan believes mining activity is highly dependent on BTC market prices, with a $7,500 cut-off price for most current farms.
Wan points to the fact that the newest Bitmain models have not shipped widely yet, and the hashrate depends on the usage of the S9 model. If true, miners may be trying to eke out as much work as possible from those rigs, until the technology allows and the block reward is still 12.5 BTC for about three more months.
Since BTC managed to bounce again to above $8,000, the scenario of slower mining did not materialize.
It is possible that the recent crash in mining was a technicality, or was mis-reported, as it is almost impossible to calculate how many machines are online. Pools also may see individual miners go on and offline.
The Bitcoin network is much more active in comparison to the end of 2017, when mining and transactions were slower despite the record market prices in December. Now, the only worrying sign is that transactions only peak around big market moves, while remaining slow on regular days.
Node count also shows the availability of network hubs has diminished, from 10,000 nodes down to 9,400. The other problem is that a large percentage of the nodes is not really geographically distributed, but are cloud-hosted on Amazon Web Services.