The Bitcoin network hashrate has hit a new all-time high of 179.4. Experts say the new milestone is attributable to the fact that even mining machines that were previously deemed obsolete are now generating profits for their owners.
Bitcoin Hashrate Surges
Per data available on CoinMetrics, the mean hashrate of the Bitcoin network has now reached a new all-time high of 179.4 and sources close to the matter have revealed that the increase is partly attributable to the current mad rush for semiconductor chips and bitcoin mining machines.
The bitcoin price reached a new all-time high of just above $61k earlier this year and it has since managed to stay well above $55k. Ethan Vera, the chief technical officer of Luxor, a North American crypto mining company said:
“The surge in the price of bitcoin, coupled with a shortage on ASIC chips has caused mining economics to turn favorably to bitcoin miners, with a good number of them now running at over 85 percent mining margins.”
Bitcoin Miner Revenue Moons
Interestingly, he further noted that the current market conditions have now made it possible for miners to make decent profits with even mining machines that were previously termed obsolete.
“Miners are scrambling to lay hands on every machine possible and even mining machines launched as far back as 2014 are profitable. All our client’s have all their rigs plugged in and hashing including their oldest machines. There is little to no idle hashrate out there,” he added.
Despite last May’s Bitcoin halving event, which further slashed block rewards for miners to 6.25 BTC, bitcoin miners have been making huge profits since the beginning of 2021, thanks to the skyrocketing price of the digital currency as well as transaction fees.
In February 2021, the weekly mining revenue of global bitcoin miners hit an all-time high of $354.4 million (roughly $50 million per day) and in March 2021, the daily income of miners rose to a new ATH of $52.3 million.
“This week, Bitcoin miner incomes hit a new USD all-time-high of $52.3 million per day. This is despite the block subsidy halving in May 2020. Since miner costs are generally denominated in fiat currency, this is positive for the assurance of continued security for the Bitcoin protocol,” declared Glassnode analysts at the time.
Interestingly, fresh reports have revealed that miners are now hodling onto their coins, rather than dump them on the market, as they firmly believe that the current bull run is yet to reach its peak.