The rapid increase of hashrate is somehow associated with expansion of mining hardware such as application-specific integrated circuits (ASICs).
The result of increasing the price of mining Bitcoin could lead mid-sized companies with counterproductive mining rigs to become unprofitable.
As we all know that the Bitcoin mining difficulty has increased but at this time also, the companies related to mining have not surged their Bitcoin selling.
The Bitcoin hashrate has attained a new milestone by hitting a new all-time high which clearly demonstrated the developing security of the network. On October 21, the overall computing power of the Bitcoin network hashrate witnessed an all-time high of 769.8 exahashes per second (EH/s).
BitInfoCharts, a crypto data provider has reported that since 2021, the hashrate has never witnessed a downtrend. The rapid increase of hashrate is somehow associated with expansion of mining hardware such as application-specific integrated circuits (ASICs).
The cost of mining Bitcoin is growing
At the same time, Bitcoin hashrate shows that the security of the network is growing gradually. It also shows that the cost of mining Bitcoin is growing significantly. Integrated with the block reward reduction of the Bitcoin halving of this year, the growing hashrate will result in miner consolidation amid mid sized enterprises.
The result of increasing the price of mining Bitcoin could lead mid-sized companies with counterproductive mining rigs to become unprofitable and eventually it may lead them to close counters or look for another alternative such as heading towards headquarters with lower energy costs.
TeraWulf’s stand over Bitcoin halving
The co-founder and COO of TeraWulf, Nazar Khan has stated that to maintain the profitability, after the fourth Bitcoin halving, miners need to use environmentally friendly equipment.
In an interview with a trustworthy media source, the co-founder revealed that, “You’ll be called into question if your company has a lot of machines and still you are not able to drive profit out of it.”
He further added that, “As a firm if you have good infrastructure that helps in carrying out low-cost power, then it can be referred to as a real asset.”
TeraWulf has positioned itself as the sixth-largest Bitcoin mining company over the world and the company’s worth stands at about $670 M. The company will spread its wings to mining operations by the end of this year which is currently restricted to the halving of block rewards.
As we all know that the Bitcoin mining difficulty has increased but at this time also, the companies related to mining have not surged their Bitcoin selling. Yesterday, the Bitcoin mining companies sent a total of 2,916 Bitcoins to the centralized crypto exchanges.
