Despite Bitcoin’s difficulty reaching an all-time high of 46.84 trillion, participants in bitcoin mining have kept the hashrate going stronger than ever before. According to statistics, on March 23, 2023, the hashrate reached a peak of 400 exahashes per second (EH/s). 400 exahash equals 0.4 zettahash or four hundred quintillion hashes per second. As the hashrate continues to climb, research analyst Sam Wouters at River Financial estimates that at the current rate of growth, Bitcoin could reach the zettahash era “by the end of 2025.”
Reasons for the Rise in Bitcoin Hashrate: Insights from River Financial Analyst
Two days ago, Bitcoin.com News reported that the difficulty of the Bitcoin network had increased for the third time in a row in the past six weeks. The difficulty is now at an all-time high of around 46.84 trillion after increasing by 7.56% on March 23, 2023. On the same day, Bitcoin’s hash rate peaked at 400 exahashes per second, representing an incredible four hundred quintillion hashes per second. Soon, Bitcoin’s hashrate will likely reach a single zettahash, which equates to 1000 EH/s or a sextillion hashes per second.
Bitcoin Network Hash Rate according to ycharts.com on March 27, 2023. The hash rate tapped the 400 EH/s range on March 23, 2023.
After Bitcoin’s hashrate rose to 400 EH/s, research analyst Sam Wouters at River Financial has tired that he has received a number of inquiries regarding the increase. Wouters also estimated that “at the current growth rate in 2023, we would reach a Zettahash by the end of 2025.” Some have questioned whether the growth is due to nation states or clandestine mining contributing to the increase. Wouters said he finds it “unlikely that the extra hashrate will mostly come from nation states.”
The analyst also acknowledged rumors of miners holding “significant inventories” of unused application-specific integrated circuit (ASIC) miners. Wouters said that with BTC’s price increase, “more of this inventory has been able to go online.” The River Financial analyst also mentioned the use of water-powered ASICs, which he said contribute “huge hashrate” and are estimated to have the highest average profitability at the moment. Wouters stated that he has written a report on what mining in the zettahash era will look like when Bitcoin reaches the 1 zettahash milestone.
The River Financial analyst explains that the current increase in hashrate could be due to a number of factors, such as “unused inventory going online”, “new models becoming available”, “more facilities becoming operational” and “clever entrepreneurs finding cheap sources before regulators intervene. .” In Wouters’ December 2022 research, the analyst states that a broad estimate indicates that there are approximately 2.5 to 5 million ASIC miners in operation today. The research shows that without any efficiency improvements for miners, it would take about 11.2 million to support a hash rate of 1 zettahash.
What are your thoughts on the future of Bitcoin mining and its potential to reach the zettahash era? Do you think the industry will continue to see significant growth, or are there potential roadblocks that could prevent progress? Share your opinions in the comments below.
Jamie Redman
Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
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