By Mark Ackman
The hash rate for Bitcoin has continued to rise throughout the month of October. The report shows that in the particular month, the hash rate for Bitcoin has risen 10.8% on a daily basis.
A look at the data suggests that it is the new all-time high, Bitcoin’s hash rate has reached a daily standard. The higher hash rate means that the Bitcoin network has greater security.
As the hash rate has recently increased, it is worth mentioning why the increase has been recorded for Bitcoin.
Prices of Mining Rigs are Falling
The mining rigs are used for mining a block that grants the mining center a Bitcoin once a block is successfully mined. Therefore, the higher the computational power, the higher the mining power.
If a company wants to increase its mining power, then it is required to have a large fleet of mining rigs. With more mining power, it becomes easier to mine a block, which in return grants them rewards.
As the year 2020 came to an end, the shortage of semiconductors became a huge problem. This ended up increasing the prices of the GPUs used in the mining equipment.
However, in the year 2022, the supply of semiconductors has started coming back to normal.
Therefore, as the key component of the mining rigs “GPUs” have started losing their market value, several mining firms have bought as many mining rigs as possible.
Due to the ongoing bear market situation, many mining firms, who could no longer afford to run mining operations, had to sell their mining equipment.
This led to a great influx of new and used mining rigs into the markets. Therefore, many mining firms gained from the opportunity and have acquired thousands of mining rigs.
This has eventually increased the mining power of many major mining firms, significantly increasing the hash rate.
Many Jurisdictions are Becoming Crypto-Friendly
As China put a blanket ban on the crypto mining industry in the country, the mining firms had no choice but to look for other options.
Countries such as Germany, Canada, Kazakhstan, Russia, and the United States have become the hottest spots where mining operations have been running in abundance.
With more crypto-friendly jurisdictions, the mining industry is thriving in such areas.
Consensus Transition of Ethereum
In mid-September, the Ethereum blockchain went through an upgrade (The Merge), which saw its protocol changed from proof of work to proof of stake.
As the Ethereum network no longer requires mining activities, many traditional mining enthusiasts have switched to Bitcoin.
With more attention being given to Bitcoin mining, its mining hash rate has increased tremendously.