Bitcoin’s hash rate has reached a new all-time high of 108 EH/s on Sept. 27, which flies in the face of those who questioned the robustness of the network. However, it might soon experience another massive drop if the BTC price doesn’t hold above the $7,500 level.
Nobody knows what happened
The network’s hash rate suddenly crashed by more than 30 percent on Sept. 24 (from 98 EH/s to 57.7 EH/s).
This preceded one of the biggest Bitcoin price drops this year. As reported by U.Today, the top coin flash-crashed to the $7,900 level on Sept. 25 and failed to recover.
There have been multiple theories about what caused this drop — from power outrages to the Bakkt flop, but the real reason remains a mystery.
Older miners could become unprofitable
Some also suspected that miners might have left the playing field en masse due to stagnant Bitcoin prices (it became less profitable to mine BTC in September). This argument doesn’t hold anymore given the network has recently printed yet another ATH despite significantly lower prices.
However, according to Dovey Wan of Primitive Ventures, the rumored exodus might indeed happen if the BTC price drops below the $7,500, thus making Bitmain Antiminer S9 unprofitable.
Pleas note S9 is still holding up majority of the hashrate now (only part of the machines have been upgraded, and M20s just shipped first few batches and S17 is not shipped yet)— Dovey Wan 🗝 🦖 (@DoveyWan) September 26, 2019
We will see a cool-down of hashrate hype and which is actually good thing for $BTC