Although the price of bitcoin has been below the expected cost of production, the network’s hashrate has significantly decreased since mid-November. After falling below the 200 EH/s area six days ago, the total hashrate dedicated to the Bitcoin network is currently cruising along at 236 exahashes per second (EH/s).
Lower Hashrate for Bitcoin
Prices for digital currencies suffered greatly during the first week of November 2022 as a result of the negative effects that the collapse of FTX had on the whole sector. Bitcoin was trading above the $20K mark prior to the FTX disaster, and the network’s total hashrate was cruising along at about 270 to 290 exahashes per second (EH/s) prior to the rupture.
The day after FTX declared bankruptcy, there was a brief spike in hashrate, and on November 12, 2022, BTC’s total hashrate reached an all-time high. The hashrate briefly reached a record-breaking 347.16 EH/s thanks to the efforts of bitcoin miners at block height 762,845. Since then, the hashrate has plunged and fell under 200 EH/s on November 26.
As on Dec. 2, 2022, 10:15 a.m. (ET), bitcoin miners have successfully surpassed the 200 EH/s region and are operating at 236 EH/s. The decrease in hashrate shows that unproductive mining operations were compelled to shut down equipment, leaving only the strong operators to continue operating.
At the time of writing, the estimated cost of producing one bitcoin ($16,956) is remarkably similar to the current spot market price ($16,897) of the most valuable cryptocurrency. Previously, on Nov. 30, the cost of producing one bitcoin was $18,313, which was much higher than the spot price of BTC. The production costs of BTC are decreasing, which makes it simpler for the current operators to sustain.
On or around December 5, 2022, bitcoin miners anticipate a significant mining difficulty reduction between 6.56% and 7.9% lower than the current difficulty rating. The network may have the biggest difficulty decline in 2022 because to the current predicted mining difficulty reduction. Between November 30 and December 2, 2022, the network’s total hashrate was reduced by about 80 exahashes.