Bitcoin’s hashrate, the measure of computational power required to mine a block in a proof-of-work blockchain, is set to hit 1 zettahash per second before the next halving event in approximately 3.5 years. This milestone is expected to be reached by 2027, even if the hashrate increases at a modest rate of 20% per year. Currently, the average hashrate stands at around 787 exahash per second (EH/s) on a seven-day moving average basis, according to data from Glassnode.
The hashrate plays a crucial role in the profitability of bitcoin miners. As the hashrate increases, so do the energy costs associated with mining, making it essential for miners to secure cost-effective power sources and improve the efficiency of their mining equipment. Additionally, the hashrate contributes to the overall security of the network, which has seen a 56% increase in the past year.
Following April’s halving event, which reduced block rewards by 50% to 450 BTC per day, the growth of the hashrate accelerated during the second half of 2024. This put significant pressure on miners as their revenue decreased, leading some to diversify their operations into AI computing or purchase bitcoin from the open market to stay profitable.
At the anticipated 1 zettahash per second mark, miners will need to adopt new strategies to navigate a more challenging market environment and sustain their operations. While there are reports suggesting that the hashrate may have already touched 1 zettahash per second for a single block, it is important to consider the probabilistic nature of mining, block time variability, and short-term network fluctuations, making it essential to rely on a seven-day moving average for accuracy.
In addition to the rising hashrate, the difficulty of mining a block has also been increasing. The blockchain has experienced seven consecutive positive difficulty adjustments since October, with the current difficulty standing at 109.78 trillion (T). This adjustment occurs every 2,016 blocks to ensure that blocks are mined at a consistent 10-minute interval. Unlike past instances where a surge in difficulty followed a drop in hashrate, the current trend indicates that both hashrate and difficulty are moving in tandem.
Overall, the impending milestone of 1 zettahash per second underscores the importance of miners optimizing their operations, securing cost-effective power sources, and enhancing the efficiency of their equipment to stay competitive in an increasingly demanding market.
