In the past, when the price of Bitcoin has decided to take a dangerous plunge in value, panic signals are often sounded across the ecosystem. These panic signals often extend to the mining community, which relies on tight profit margins linked to the price of Bitcoin.
If the price of Bitcoin happens to fall steeply, there are often situations where mining the blockchain is no longer profitable, and therefore no longer worth pursuing. This was witnessed at the peak of the 2018 bear market, where video and pictures emerged of mining equipment being tossed away.
However, in 2019, when the so-called Bitcoin Spring came through, so the mining ecosystem started to tear away. Bitcoin mining difficulty never seemed to dip, and the Bitcoin hash rate – directly tied to the interest in mining and validating the chain – continued to rise.
People have equated Bitcoin’s impressive mining performance to a number of things, not least the upcoming reward halving that will see miners earn 50 less than they used to sometime in early 2020.
However, there are also suggestions that the Bitcoin mining hardware advances are at the heart of this increased drive in the mining efforts. Bitcoin, in 2019, with the reward halving, was also seeing the keen interest and market domination, which led more people to feel that Bitcoin was winning in a lot of metrics.
However, there looks to be more at play when it comes to counting the mining algorithm. Alejandro De La Torre, the Vice President of Poolin, one of the largest mining pools in the world, spoke with The Daily Chain recently about the updated hardware.
“The mining hash rate being on the rise has a lot to do with the new generation of mining equipment,” De la Torre explained. “Basically every single mining manufacturer has already sold out all their new patches so a lot of mining operators have received their new machines and they have switched over from the old generation to the new generation.
“These machines are up to 4 times stronger than the S9s, so you are talking about some serious hash power for a low amount of electricity usage.”
This theory could well be backed up by the recent drop in Bitcoin price, but the continued Bitcoin hash rate.
According to some measures, the hash rate on Nov. 23, in fact, nearly matched its previous all-time high. At 134 quintillion hashes per second, Saturday’s reading was almost identical to that from Oct. 10, Coin Dance statistics suggest.
BTC/USD traded at around $7,200 on that day, compared to $8,600 in October.