Breaking News: Bitcoin has reached a NEW All-Time-High Network Hash Rate!
Just when some people were hoping to see Bitcoin’s imminent doom a mere few months ago amidst China’s “ban” on bitcoin mining, Bitcoin once again has shown its resilience with a NEW ALL TIME HIGH Hash Rate for the Bitcoin Network being reached in December of 2021.
While Bitcoin’s prices are not sitting at all-time-highs as of the time this article is being written, that’s completely okay. New all-time-highs will likely come in the next year for Bitcoin’s price, based on mining activity we’re seeing, but there is no way to know for sure. It’s important to understand that bitcoin’s total network hash rate and bitcoin’s total price do not necessarily always correlate, and there’s nothing to be alarmed about. Everything is fine and working as designed.
After all… most bitcoin believers understand volatility is simply part of the game when it comes to owning and mining bitcoin, and nearly all hardcore bitcoiners truly believe that- in the long run, when taking a macro approach to analysis- bitcoin will continue to increase in value for years to come, basically in perpetuity. If someone “panic sells” when bitcoin dips, you can most certainly bet an anxious buyer is waiting to scoop up those lonely sats. But- again- the bitcoin increasing in price forever thing: Is that a fact?
Obviously, nobody can tell the future- and only time will tell- but all signs strongly point to this being a fairly accurate description because bitcoin’s continued adoption, along with inflation, should theoretically ensure bitcoin’s price continues to increase forever. Hypothetically, even if bitcoin were the world’s reserve currency, the price could continue to rise and rise. BUT- we’re not here to talk about price today. Today we’re here to talk about bitcoin mining hash rate, and we’re here to honor the hard working miners across the world who have helped bitcoin to reach a new record high hash rate in the waning months of 2021 entering in to the early months of 2022 and beyond.
Whether bitcoin’s price and hash rate continue to rise or not, gegardless, it’s a tremendous achievement for Bitcoin and bitcoin miners everywhere to see Bitcoin reach a NEW ALL TIME HIGH Network Hash Rate in December 2021.
How Did This Happen?
Bitcoin reaching a new all-time-high network hash rate is a story of resilience and perseverance, first of all. Many individuals and bitcoin miners across the world have instilled their faith in bitcoin and- despite continuous attacks from the outside- bitcoin has once again proved to be somewhat invincible to the noise.
How Did The Bitcoin Network Reach A New All-Time-High Total Hash Rate In December 2021?
Certainly, many factors are at play when it comes to analyzing the bitcoin mining industry and only a few major factors can be included in the span of a short article.
More miners have come online in recent months, obviously, and more new generation machines like Bitmain Antminer S19j Pro are clearly starting to be ran more and more by those who are mining- often replacing the still strong Antminer S9 for many- but more significant developments have taken place.
For those that don’t know what a hash rate is… while there is much more to it than this… the simplest explanation possible is that it’s the speed which a Bitcoin Mining Machine can solve equations or “hash.”
Basically, the more hash rate you control equates to how much money you can potentially make as a bitcoin miner. This is why it is important to always try to obtain as much hash rate as you can afford, when purchasing new bitcoin mining equipment, if you’re serious about making a living mining bitcoin.
Even beyond understanding the absolute basics about bitcoin, and even after knowing a bit more about bitcoin mining as well and even beyond understanding that more hash rate is overall good for bitcoin, there are many contributing factors to consider when you attempt to decipher where hash rate comes from and how a new record hash rate could be reached.
To learn more about some of the most likely factors at work when considering how Bitcoin has reached a new record hash rate in December 2021- keep reading.
Who Helped The Bitcoin Network Reach A New All-Time-High Hash Rate?
If you’re reading this article, it’s likely you probably have helped contribute to growing the bitcoin network’s hash rate in some way.
Whether you are a bitcoin miner yourself, a bitcoin buyer, or someone who is simply interested in learning more about bitcoin, your adoption of bitcoin in some fashion alone has helped to grow the bitcoin network’s total hash rate because more widespread adoption and more use of bitcoin ensures continued transactions which in turn helps generate the fees which go into new bitcoin mining block rewards…and these rewards help incentivize miners to keep validating transactions and mining more bitcoin.
Take a breath and rub your brain a moment after processing all that information, because it’s all really easy to comprehend when you think about it for a minute.
For one, it’s not just home miners that you have to consider in 2021. Certainly, those mining at home are still contributing to today’s hash rate in a very significant way. However- as we all know- given the significant power demands and exceptional noise produced by bitcoin mining machines on the market today, there is only a limited scale you can reach when running Bitcoin Mining ASICs at a normal residence.
Rather, the bulk of today’s hash rate likely is derived from many of the professional mining companies operating in 2021, including established players that both mine for themselves and in some cases host bitcoin miners for others also, like Riot Blockchain, Core Scientific, Blockstream, Hut 8 Mining, and Compute North, to name a few, and there are also startups gaining scale daily like MinedPool Technologies. A vast proliferation of hash rate can take place rather quickly when you have some large-scale bitcoin miners continuously adding more hash rate to their arsenal while deploying more mining machines daily.
Also, while some may not understand the relevance, governments also have helped to grow Bitcoin’s Hash Rate in various ways. For one, El Salvador’s government is very “pro-Bitcoin” and they help to drum up interest around the world in turn, despite the relative small stature of the country itself.
China “banning” bitcoin mining also did help grow Bitcoin’s hash rate in the end. Sure, while there was a temporary drop-off in total hash rate for the entire bitcoin network when China cracked down on their country’s largest miners… the key word is temporary. Heck, many of China’s largest bitcoin miners even moved to the USA and other countries recently since their own country instituted a sweeping ban, partially helping to completely shift the balance of hash rate among countries.
The power with which Bitcoin has persevered this time is quite amazing, and also the relatively quick recovery to a new all time high is remarkable, isn’t it?
Is It Too Late To Start Mining Bitcoin Now?
Whether you want to mine bitcoin at home or you want to host your bitcoin miners with a professional hosting and colocation company tailored to bitcoin miners like MinedPool, you likely can find opportunities to get started that work with your budget and goals.
Certainly, bitcoin mining machines are not the cheapest devices in the world. However, what other computer or piece of machinery can you buy that makes YOU money?
With Bitcoin Mining ASICs, there are a variety of choices available that can work with most budgets, and- they have deliverer an exceptional ROI historically, plus they also have continued to increase in value in recent months.
While you can ultimately do your own research to confirm if you think it’s still a good time to get started mining bitcoin, there is a good chance you still can get started mining bitcoin right now and can still have some success- especially with bitcoin miner hosting companies like MinedPool Technologies making it extremely easy to get started mining bitcoin nowadays, often without even needing any technical knowhow and often with a completely hands-off experience.
Long story short…most bitcoin advocates would tell you- no, it’s absolutely not too late to start mining bitcoin.
Will Bitcoin’s Hash Rate Continue To Increase In 2022?
Nobody we know of has a crystal ball that allows them to accurately predict the future. Certainly, despite what some people may thing, we can’t predict the future either. Nonetheless, some things are easier to make an educated guess about than others are.
For example, when someone asks: will bitcoin’s total network hash rate continue to increase in 2022? The answer is a resounding YES!
Why? It’s simple. More and more people are becoming interested in bitcoin, buying bitcoin, and- naturally- more people are discovering bitcoin mining also.
Second, more bitcoin adoption by large companies will help to greatly accelerate bitcoin interest and- once again- bitcoin’s hash rate will be a beneficiary in these types of instances.
Additionally, large mining companies are continuing to grow and add more hash rate continuously. These simple factor, combined with more powerful mining machines coming online, seems to assure bitcoin’s network hash rate will continue to increase significantly. It’s only a question of who will capture the hash rate, not of if the bitcoin network’s hash rate will grow or not. Or… at least that’s our two cents.
What do you think? Since, obviously, nothing in this educational article can be construed as financial advice, we always love to hear your opinions. Will bitcoin continue to reach new all-time-highs for hash rate throughout 2022? Perhaps you know the answer, but for sure time will tell.
Thanks for reading the latest installment in the MinedPool Technologies Blog. As always, MinedPool is your go-to source for all-things bitcoin mining and the best bitcoin news.
Are you going to go capture more hash rate now?