Speculation among analysts suggests that the Bitcoin hash rate has experienced a significant surge lately, attributed to miners going back online to benefit from the increased value of BTC.
On March 23, Bitcoin’s hash rate surged to 398 terahashes per second (TH/s) at BTC$27,114. Experts have concluded that because of this, miners may be turning their rigs back on in response to the increasing price of BTC.
As per the YCharts’ data, the Bitcoin network’s hash rate increased to 344.63 TH/s on March 27. The hash rate increases significantly from 178.77 TH/s last year and 335.32 TH/s the day before to reach 473.18 TH/s.
Research analyst Sam Wouters at River Financial proposed a reason for the recent Bitcoin hash rate increase. Wouters suggests that previously unused mining equipment, new facilities, and affordable resources may be factors. River Financial is a financial service provider for Bitcoin. Wouters suggested in a post on March 26.
Bitcoin's hashrate touched 400 Exahash. At the current growth rate in 2023, we'd reach a Zettahash by the end of 2025.
I'm getting questions and concerns from people.
Where is the growth coming from? Is it nation-states? Secret mining operations? Did someone find some exploit? pic.twitter.com/MMWfgPbqty
— Sam Wouters (@SDWouters) March 27, 2023
He stated that they made efforts to bring as much inventory online as possible when the price of Bitcoin was low last year. However, the network reached its maximum capacity at a certain point,” can be a rephrased version of the given statement.
Wouters said that as the price has increased and some time has elapsed, more of the inventory has become available online. Moreover, he mentioned that Hydro models are now entering the market with over 250 TH/s per machine, resulting in a substantial increase in hash rate.
Based on Stifel analysis, an investment banking firm, on March 20, there was a similar belief that the recent increase in cryptocurrency prices may be due to miners returning their hardware to operate.
TeraWulf Maximizes Hash Rate, Expects No Further Increase
TeraWulf’s Nazar Khan said they’re improving hash rate of all their mining rigs, as a Bitcoin mining company. They have also added more rigs at their new Nautilus Cryptomine facility.
According to Khan, Wulf can increase its capacity by 80 MW at LMD and 50 MW at Nautilus. The recent price trend suggests that having the ability to expand at inexpensive energy sites holds significant long-term value.
Khan says miners stopped operations due to declining BTC prices but TeraWulf kept going with cost-effective mining fleets. TeraWulf managed to sustain their Bitcoin mining operations despite reduced price levels. Khan dismisses the idea that low prices forced miners to wait for an improvement in BTC value.
— TeraWulf (@TeraWulfInc) March 20, 2023
Khan has Observed that the reason behind the increase in network hash rate is still not clear. TeraWulf, however, doesn’t expect any further growth in the first half of 2023, regardless of BTC’s price. Khan states these findings.
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Khan explained that there is a delay between the time investment decisions are made and when the capacity becomes operational.