Bitcoin Total Hashrate Drops -1.7%

a StockApps.com A data presentation shows that Bitcoin’s total hash rate fell by -1.7% in Q2 2022.

There have only been a few other times in its history when the hashrate has dropped significantly.

Despite this, the price of BTC is down 56% while it is still up 13.93% this year.

StockApp’s Edith Reads said:

“The reason for the sharp drop in hash is the falling bitcoin price, which makes older equipment unprofitable on the margins.”

Edith adds that the recent heat wave in the United States and the curtailment of production, particularly in Texas, also played a role.

As summer energy demand and costs rise, industry-scale miners may stop hash rate per power contract.

Downgraded for 3 consecutive years difficult adjustment It’s the fourth time in the past 10 weeks that the hashrate has dropped.

Hash prices have returned 48% of their lows since the correction and subsequent price surge.

The marginal cost of Bitcoin production for some large public Bitcoin miners ranges from $6,000 to $10,000.

Most of these expenditures are directed towards the cost of electricity.

The entire network costs much more to produce because it uses state-of-the-art, latest-generation hardware.

Price cuts affect minors

Bitcoin’s falling price has made miners less profitable and has led to the closure of some businesses.

Miners with excess capacity can take advantage of increased competition to capture a large portion of the total hashrate.

This causes the hashrate to rise again and the cycle continues.

According to reports, miners are selling more of their bitcoin holdings.

This action will put downward pressure on the price of the currency.

Nevertheless, the global hashrate continues to climb (at least for the time being), reaching a new ATH on June 8th.

https://www.financialmirror.com/2022/08/05/bitcoins-total-hash-rate-is-down-1-7/ Bitcoin Total Hashrate Drops -1.7%