Bitcoin Hashrate Hits All-Time High, Network Difficulty Expected to Rise

• Bitcoin’s hashrate has reached an all-time high, recording 361.20 exahash per second on Jan. 6, 2023.
• Block intervals are now faster than the 10-minute average, costing less to generate one BTC than the spot price.
• The network’s difficulty is expected to rise, leading to a possible record-setting increase.

Bitcoin’s network hashrate has been on a steady incline for the past few months, and it recently reached a new all-time high (ATH) on Jan. 6, 2023. At block height 770,709, the network registered a hashrate of 361.20 exahash per second (EH/s). This new record is over 4% higher than the previous record of 347.16 EH/s, which was recorded on Nov. 12, 2022 at block height 762,845.

Block intervals are now faster than the 10-minute average, as statistics show that intervals between mined blocks are between 8:51 and 7:31 minutes. This has led to a decrease in the cost of BTC production, with metrics from macromicro.me indicating that the cost of generating one BTC is $16,568 per unit while the spot price is $16,920 per unit. Additionally, statistics from theminermag.com show the cost of Bitcoin production to be around $13.6K per unit.

The high hashrate is expected to lead to a rise in the network’s difficulty, which could potentially cause a record-setting increase. Difficulty is a measure of how difficult it is to find a block, and it is recalculated every 2,016 blocks (roughly every two weeks). As the hashrate increases, the difficulty also rises in order to keep block times consistent. This means that miners will have to work harder to generate new blocks, and the competition for rewards will be even more intense.

The next difficulty adjustment is expected to occur in eight days, and it will be interesting to see if it will break the record. If it does, then the Bitcoin network’s hashrate and block times will continue to increase, and the cost of generating one BTC will remain low. Regardless of the outcome, the new ATH is a testament to the growing strength and resilience of the Bitcoin network.