• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
Nexo Logo

Bitcoin Miner Death Spiral Cancelled as Hash Rate Sets New All Time High

Samuel Wan by Samuel Wan
2 years ago
in Bitcoin
Reading Time: 3 mins read
Advertisement

Following the Bitcoin halving, concerns over miner capitulation have proven unfounded. The week just gone saw the network hash rate reach a new all-time high of 125 million TH/s.

Bitcoin hash rate

Source: blockchain.com

Significant pullbacks occurred in March and May, sparking fears of the beginning of a miner’s exodus. Current data shows the Bitcoin network is strong as ever.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Bitcoin Hash Rate Recovers From Early Year Wobbles

Despite Bitcoin’s range-bound performance of late, the network hash rate continues to show strength. This is indicative of high confidence from miners.

However, at around the time of the halving, some industry executives raised concerns that the drop in block rewards, from 12 BTC to 6.25 BTC, would lead to the collapse of the network, as unprofitable miners switched off their rigs.

At the time, Digital Asset Manager at Caprioleio, Charles Edwards, warned of a confluence of factors, including rising production costs and stagnant price, that would trigger a capitulation of miners.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

“This will be the most brutal Bitcoin Halving in history. Production cost is about to double to $14,000. 70% above the current price. Last halving, price was just 10% below Production cost, and Price & HR collapsed -20%. Without FOMO now, expect a big miner capitulation. 30%+“

bitcoin price

The daily chart of Bitcoin. Source: TradingView.com

Following the halving on May 11, 2020, the hash rate dropped 25% from 122 million TH/s to 91 million TH/s. But rather than continue in a “death spiral,” this bottomed in mid-May, leading to recovery.

Director of Business Development at Krakenfx, Dan Held, commented that fears over a miner capitulation were ill-founded. Held even joked about the terminology being inherently FUD inducing.

“sPiraLs are the favorite doomsday word of economists 😉 Ex: dEfLatIoNaRy sPiRaLs“

Bitcoin hash rate just set a new all-time time high.

The Bitcoin halving was 63 days ago.

Miner "Death spiral" FUD debunked yet again.

— Dan Held (@danheld) July 13, 2020

Mining Difficulty Remains an Entry Barrier For Small Independent Miners

As Bitcoin’s hash rate reached all-time highs levels yet again, expectations are that the network difficulty will also follow suit.

Mining network difficulty is an inbuilt process that regulates the speed of block-creation. A high hash rate calls for the difficulty to increase so that the homeostatic level of one block produced every 10 minutes is maintained.

At present, network difficulty is 15.8t, which is below its all-time high of 16.5t set in March 2020.

Bitcoin network difficulty

Source: blockchain.com

But, mining pool BTC.com estimates that network difficulty will jump shortly to 17t, surpassing the previous all-time high.

Source: btc.com

Part of the reason why comes down to a new arms race between Bitcoin miners. Tim Rainey, Chief Financial Officer of Greenidge Generation spoke about the next generation miners being so much more efficient than predecessors.

This effect is magnified when taking into account the scale of operations that now dominate Bitcoin mining.

“This difference is twice in the case of market-leading Antminer machines from Bitmain, where Antminer S19 has twice the hashrate of its predecessor Antminer S17. Furthermore, larger bulk orders from industrial-scale data centers, which have been cycling out their older machine models, have catalyzed this process.”

Bitcoin mining has often been accused of being elitist, the current state of the landscape will only deepen this gripe.

Tags: bitcoinBTCUSDThash rateminersxbtusd
Tweet123Share208ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Samuel Wan

Samuel Wan

Samuel Wan is passionate about different cultures and eating good food. He has years of experience working in business and finance — a burgeoning interest in Bitcoin and cryptocurrencies since 2017. UK based.

Related Posts

Crypto starts week Positive, Bitcoin Bulls Prep For A Breakout

Bitcoin Dominance Remains High As Market Sell-Offs Settle

16 hours ago
Bitcoin Bearish Signal: Whale Ratio Continues To Stay At High Value

Bitcoin Bearish Signal: Whale Ratio Continues To Stay At High Value

20 hours ago
bitcoin

Perp Traders Remain Quiet As Bitcoin Struggles To Hold $30,000

22 hours ago
Bitcoin on-chain metrics

Bitcoin On-Chain Activity Throttled After LUNA Collapse

2 days ago
Bitcoin Consolidation Uninspiring, But Run To Near $33k On The Cards

Bitcoin Consolidation Uninspiring, But Run To Near $33k On The Cards

2 days ago
Bitcoin

Bitcoin Trading Volume Plummets Down From Recent Top

2 days ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Wildcoins Casino

Wildcoins Casino

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

LBank Exchange Will List Value Interlocking Exchange Coin (VIC) on May 30, 2022

May 27, 2022

LBank Exchange Will List TEAK COIN (TEAK) on May 30, 2022

May 27, 2022

Solana (SOL) and Cardano (ADA) begin to recover as crypto market braces for emergence of Sanzooz Finance (SZFT)

May 27, 2022

Watchlist Essentials: Discounted Blue-Chips Ripple (XRP) and Avalanche (AVAX); Presale For Quitriam Finance (QTM)

May 27, 2022

3 Coins to Potentially Elevate Your Finances: Logarithmic Finance (LOG), KuCoin Token (KCS), and Litecoin (LTC)

May 27, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win
  • Spin & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.