The hash rate of the world’s first cryptocurrency continues to increase at an astonishing rate. The hashing power of the network increased by 139% in 2018 so far, even though the price of Bitcoin fell by 53% in the same time period. The current hashrate is around 36 exahashes per second (exa = 10 raised to the 18th power).

What Is Hash Rate?

Bitcoin mining is a cryptographic process during which the miner attempts to calculate the solution of a complex problem. Each calculation attempt is called a hash, and the hash rate is expressed as the number of hashes per time period, with H/s (hashes per second) being the most often used base unit. The miner or mining pool with the highest hash rate has the highest probability to find the solution and mine a new block, thereby securing the 12.5 BTC block reward. Today, ASICs (application specific integrated circuits) are the most widely used hardware to mine Bitcoin, as they achieve high hash rates and are energy-efficient. In July 2012, the total hash rate of the Bitcoin network was around 12 TH/s. Today, a single ASIC miner can achieve the same hash rate.

The Hash Rate Has Increased Regardless of Price Activity

The Hash rate of the Bitcoin network has increased from about 15 EH/s on January 1 2018, to almost 36 EH/s on July 16. The 140% growth indicates miners’ trust in Bitcoin. Instead of deciding to mine other cryptocurrencies, they persist and strengthen the Bitcoin network. But why did they decide to focus on Bitcoin?

First of all, even though Bitcoin’s price is lower than it was before (BTC is currently trading at $6,350), the block reward of 12.5 BTC still amounts to almost $80,000. Another possible explanation is that the miners are stashing their rewards and holding on the Bitcoins earned by mining as an investment, which they will sell when the price increases.

Image source: Bitcoinity

The third factor that may be driving the hash rate up is the upcoming reward halving. The block reward halves every 210,000 mined blocks. The Bitcoin Halving #3, which will decrease the reward to 6.25 per block, is estimated to occur in May 2020. Miners might be trying to accumulate as much Bitcoin as possible before the reward is cut in half. The first Bitcoin halving took place on the November 28 2012, when BTC was trading at $12. The second halving was on July 9 2016, when the price was $660. Up to now, the halvings have been happening every four years, just like Satoshi Nakamoto intended when he designed Bitcoin.