Bitcoin hashrate hits all-time high

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The date of the next bitcoin halving has moved to an earlier date due to a sharp increase in the hash rate in the network.

As of September 11, the bitcoin hashrate reached 281.79 million terahash/sec. This means that new miners are connecting to the network, providing it with additional protection. Previously, it was assumed that the next bitcoin halving would occur in May 2024, but now, due to the growth of the hash rate, the forecast date has shifted to the last quarter of 2023.

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Halving cuts the reward that miners receive for a mined block by half. This mechanism is embedded in the Bitcoin source code and works every 210,000 blocks. The more miners working in the network, the faster they mine blocks, thus bringing the date of the next halving closer.

This was pointed out by experts from the cryptanalytics provider The Tie:

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“Hash rate growth has a side effect: halving,” they tweeted.

Now miners receive 6.5 BTC for each block. After the halving, this amount will be reduced to 3.125 BTC. The whole process will continue until 2140, when it is estimated that all 21 million bitcoins will be mined.

Halving will reduce inflation in the network and, according to some experts, contribute to the growth of the BTC rate in the long term.

Halving is closer than you think

The next halving will happen in about a year and a half, but if the current hashrate levels are maintained, then the timeline could be shifted by several months. The current block in the network is 753,742, and the halving should occur at a height of 840,000.

The previous reduction took place in May 2020. Between the halvings of 2016 and 2022, the price of bitcoin increased by 50 times. After the previous halving, the average commission in the network bitcoin increased by 647%. Some experts feared that miners would start leaving the network after the halving, but this did not happen.

Network indicators do not inspire fear

Bitcoin broke the $21,000 mark, an optimistic signal for the asset. Reports have shown that mining revenue is below $1 billion for the fourth month in a row, but overall sentiment on the network is improving.

Despite the fact that the next contraction is still far away, and the market is bearish, investors are optimistic about the future of the asset.

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Source: Cryptocurrency

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