Bitcoin has been in the news recently because to its soaring price and record-breaking network hash rate. The Bitcoin network hash rate increased significantly from 335.32 TH/s on March 26 to 398 TH/s on March 23, as reported by data aggregator YCharts. Many variables, including the activation of previously idle mining inventories, the launch of new mining facilities, and the discovery by enterprising individuals of inexpensive mining, are being blamed for this sudden increase in hash rate.
Research analyst at Bitcoin financial service provider River Financial, Sam Wouters, attributes the current increase in hash rate to the stock of mining gear that came online last year. He explains that while the price of Bitcoin was low, miners flooded the network with as much supply as they could. The increase in hash rate, however, may be attributed to the recent price increase and the subsequent delay in bringing more inventory online.
According to Wouters, the introduction of Hydro models into the market is adding “terrific hash rate,” with “250+ TH/s per machine.” This sentiment was echoed in a March 20 analysis by investment banking firm Stifel, which speculated that the increase in hash rate was due to miners reactivating offline hardware.
US-based Bitcoin mining firm TeraWulf has benefited from the recent uptick in hash rate. TeraWulf CEO Ammar Khan claims that the company’s effective mining fleets have allowed it to keep Bitcoin mining despite recent price drops. Nevertheless, Khan notes that TeraWulf has been able to keep mining because to its low-cost energy locations, despite widespread speculation that decreased prices have driven miners to shut down their rigs and wait for the BTC price to increase.
Khan further mentions that TeraWulf can increase its power output by 80 MW at LMD and by 50 MW at Nautilus. He interprets the current price increase as proof of the lasting worth of having the option to develop in low-cost energy areas. Given the time gap between investment choices and the actual online arrival of that capacity, he does not anticipate the network hash rate to improve more during the first half of the year.
Overall, it’s apparent that miners are taking advantage of the present market circumstances, as Bitcoin mining is getting more lucrative. But, the precise explanation for the recent jump in hash rate remains unknown. It will be fascinating to see the ongoing development of the hash rate and its effect on the price of Bitcoin as more enterprises join the market and more inventory comes online.
