Bitcoin Hashrate Reaches New High While Chinese Mining Farms Gradually Plugging in Equipment as the Rainy Summer Approaches
Bitcoin network’s hashrate, which represents the amount of computing resources being dedicated towards providing security for the cryptocurrency’s blockchain (among other uses), has reached a new record high above 7.93 trillion. Seven percent jump from the 7.45 trillion record set during the recent two-week adjustment cycle, which was the highest since October 2018.
Bitcoin adjusts its mining difficulty every 2016 blocks (about 14 days) to ensure that the block production interval in the next cycle can be maintained at about 10 minutes. When there aren’t too many mining equipment to get Bitcoin rewards, the mining difficulty decreases, and when there are more mining equipments in the network, the mining difficulty increases.
According to data from BTC.com, the global average computing power has reached 56.77 EH/s in the past 14 days, and everyone is “crazy” in mining.
By June 22, the computing power of Bitcoin has reached 66 EH/s, surpassing last year’s record of 61.86 EH/s. Now the computing power has doubled compared with 31 EH/s last year’s bear market. Assuming that all the new computing power has recently come from Ant Miner S9, which has a power of about 14 TH/s, it means that more than 2 million mining machines (1 EH/s equals 1 million TH/s) have been deployed in the market in the past few months.
The increase in mining capacity is consistent with Bitcoin price surge in the first half of the year. This market trend has also led to a doubled price of second-hand miners in China and stimulated the demand for new miners. BTC.com estimates that the mining difficulty of Bitcoin is expected to increase by 7% at the beginning of the next adjustment cycle, which means that for the first time for bitcoin mining difficulty to cross the eight trillion thresholds.
This interest comes from the mining farm , especially in the mountainous southwestern region of China, are gradually plugging in equipment as the summer rainy season approaches. Earlier this month, 50% of the world’s Bitcoin computing power came from Sichuan Province, China, according to a report released by Coinshare, a blockchain research company.
However, the rainy season in southwestern China has been delayed by one month compared with previous years. As a result, in the past month, some local miners have been operating at less than half their capacity. Xun Zheng, CEO of Hashage, a mining operator in Chengdu, said it had not rained for more than 20 days since the beginning of May, which was “extraordinary”.
“In the past few years, the rainy season usually started in May, so hydropower stations usually have enough water before the beginning of June,”
Therefore, in early June, the mine ran with 40% of the computing power. If it run with full computing power, it could also load 200,000 ASIC miners. But as the rainy season of the past two weeks is gradually approaching, the computing power has reached 60% of the its total.
China’s mines had previously estimated that the peak hash rate could exceed 70 EH/s during the rainy season in August this year. Assuming that all the equipment is Ant Miner S9 or similar ones, another 300,000 miners can be put into use in the mining farm.