Bitcoin computing power reaches new high, breaking halving expectations
Recently, Bitcoin’s computing power has reached a record high, shattering many investors’ expectations of a decline in mining willingness after the halving. Bitcoin’s total computing power has exceeded pre-halving levels, with computing power climbing to an all-time high of 657 EH/s (ATH). Currently, the 7-day SMA shows hashrate at 652 EH/s. This shows that even with the block reward reduction, miners still have confidence in Bitcoin and actively participate in mining.
This phenomenon reflects the market’s optimism about Bitcoin’s long-term potential. Although Bitcoin prices have experienced some fluctuations, miners continue to invest resources and maintain high computing power, which shows their optimism about the future price trend of Bitcoin.
A lot of money is invested in mining, and the cost of Bitcoin rises
In 2024 alone, Bitcoin mining activity in the United States cost $2.7 billion worth of electricity. This figure shows that despite the high cost of mining, miners still insist on investing, which further proves their confidence in Bitcoin.
As the price of Bitcoin rises, competition in mining becomes more intense. High computing power means higher mining difficulty, which requires miners to invest more in electricity and equipment. However, the investment is clearly worth it, as miners believe that Bitcoin's value will continue to grow in the future.
Best Brokers analyst Paul Hoffman said: “Bitcoin mining in the United States has consumed a huge 20,822.62 GWh of electricity since the beginning of 2024. As of February, the average commercial electricity price was $0.1281 per kilowatt hour, which equates to an expenditure of $2,667,378,196.47. "
Source: Best Brokers
Despite the increasing difficulty and cost of mining Bitcoin, the market remains optimistic about its future potential. As uncertainty in the global economy increases, Bitcoin is viewed by more and more investors as a safe-haven asset and store of value.
Many experts believe that Bitcoin’s decentralized nature and limited supply give it significant potential to increase in value over the long term. As more institutional investors enter the market, demand for Bitcoin is expected to grow further, which will push its price higher.
The future trend of Bitcoin mining
When we look at the global mining landscape, we can see that China is in second place, generating 21.1% of mining electricity consumption despite strict regulations that limit mining operations. Kazakhstan ranks third, accounting for 13.2% of the total mining hashrate. Notably, Kazakhstan devotes 19.2% of its entire electricity consumption to mining Bitcoin.
Source: Best Brokers
In the future, as Bitcoin's recognition and demand continues to increase, we can expect mining activity to continue to grow. Despite the high cost of mining, miners' confidence in Bitcoin makes them willing to continue investing resources to maintain high computing power.
In addition, with the advancement of technology and the upgrading of mining equipment, mining efficiency is expected to increase, which will further reduce mining costs and attract more participants. This trend will help maintain the stability and security of the Bitcoin network and provide a solid foundation for its future development.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
