The Bitcoin hashrate reached a new all-time high. On the 2nd, the average computing power in the network climbed for the first time over 1.1 zetta hash per second (ZH/s). The 7-day average also exceeded this psychologically important threshold with 1 ZH/s for the first time. In this way, the Bitcoin network underlines its resilience.
From 1 EH/s to 1 ZH/s: A decade in time lapse
To classify the dimension: 1 ZH/s corresponds to 1,000 exahash per second. In 2016, the network exceeded the 1 EH/s mark for the first time. In less than ten years, the hashrate has increased a thousandfold.
In the meantime, there were setbacks, such as after China’s mining in 2021, when the hashrate temporarily fell by almost 50 percent. But the industry recovered quickly and shifted its capacities to North America, Kazakhstan, and South America. The new record marks not only technical growth, but also the geostrategic shift of an entire industry.
In April, the hashrate briefly exceeded the 1 ZH/s mark – for the first time in the history of Bitcoin. However, this peak remained only a snapshot. Only now is the seven-day average above this threshold.
Difficulty with adaptation is imminent.
The result of the new record performance: a difficulty adjustment of more than seven percent is expected to become a difficulty adjustment in the coming days, the second largest increase of the year.
This automatic set of rules ensures that a new block is found every ten minutes on average – no matter how much computing power is installed. For miners, however, this means increasing demands: if you want to keep up, you have to use more modern hardware or use particularly cheap power sources.
Mining profitability under pressure
The increasing competition is reflected in profitability. According to a recent JPMorgan report, miners earned an average of 55,100 US dollars per block in daily block reward in August in August a decrease of four percent compared to July. The gross profit per EH/s fell by 7 percent to 31,900 US dollars.
The pressure on the industry is growing: Since the Halving in April 2024, the Block Rewards have fallen to 3.125 Bitcoin. Together with increasing difficulty, margins are falling – despite high network security.
Miners rely on high-performance computing.
Despite falling profit margins, the market capitalization of the 13 listed US mines observed by JPMorgan increased to a record high of around 39 billion US dollars in August.
Reason: Many companies diversify. Companies such as TeraWulf or IREN are investing in high-performance computing (HPC), especially for applications in the field of artificial intelligence. This dual strategy is intended to counter the fluctuating Bitcoin revenues for more stable cash flows.
What chances the current developments offer for listed miner shares such as Marathon or Riot Platforms, and why they could even be considered more attractive than MicroStrategy, we have illuminated in this analysis: Bitcoin-Miner in front of mega-comeback: Now joining MARA and Co?
Focus on energy and sustainability.
With increasing hashrate, the energy debate also returns. Critics point to the high-power consumption of the network. Proponents argue that mining infrastructure is increasingly relying on renewable and sustainable energy.
The Cambridge Bitcoin Electricity Consumption Index (CBECI) estimated the share of renewable energies in Bitcoin mining at around 40 percent. A significantly more optimistic figure was provided by the Bitcoin Mining Council (BMC) in its last half-year report (H1 2023): according to which the share of renewable energies – including Hydro, Wind, Solar, and Geothermal Energy – was almost 60 percent.
Global mining landscape
While North America is considered a dominant location, new regions are also gaining in importance.
- Paraguay: Reservoirs provide cheap hydropower.
- Kazakhstan: Profited after the China-Ban but is fighting with regulatory pressure.
- El Salvador: Try to make mining with volcanic energy a national project.
Geographical diversification strengthens the resilience of the network – and makes it more independent of political intervention.
Impact on Bitcoin Course
For investors, the increase in hashrate has a double signal effect:
- Long term: A bullish sign. More hashrate means more security and underlines the institutional attractiveness of Bitcoin as a digital basic asset.
- Short term: A burden on miners, which could be forced to sell Bitcoin stocks due to rising costs. This can put temporary pressure on the course.
The upcoming Difficulty adjustment will show how resilient the industry is to the new burden.
Network Security: Discussion about mining pools
Parallel to the increasing hash rate, the community is repeatedly discussing the role of large mining pools. Some critics warn that the concentration of computing power theoretically involves risks among a few actors.
Looking ahead: Hashrate 2028?
It is already being specified how the hash rate could develop until the next Halving in 2028. Should growth continue, 2–3 ZH/s would be realistic until then. But not all miners will be able to go along with this path – competition is intensifying.
The following applies to Bitcoin itself: With every increase in hashrate, security and decentralisation increase. This strengthens the role of the cryptocurrency as “digital gold” and could further fuel institutional tributaries.
The new all-time high of the Bitcoin hashrate marks a milestone in the history of the network. The threshold of 1 zettahash in the 7-day average is symbolic of the professionalization and resilience of the industry.
For Miner, however, development brings challenges: rising costs, falling margins, and the pressure to diversify. For investors, on the other hand, it is a strong sign of the robustness and security of Bitcoin, even if price pressure can arise in the short term.