Category Archives: hash rate

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Bitcoin Hash Rate erholt sich weiter, NEM explodiert – Das Marktupdate

Bitcoin stagniert, doch bei der Hash Rate stehen die Zeichen auf Erholung – und Dezentralisierung. Unterdessen schafft es NEM, sich aus dem Sommerloch zu befreien. Das Marktupdate.
 
Source: BTC-ECHO

Der Beitrag Bitcoin Hash Rate erholt sich weiter, NEM explodiert nach Kolumbien-Deal erschien zuerst auf BTC-ECHO.

Trotz Bitcoin-Korrektur: PlanB sieht BTC bei 135.000 USD im Dezember

Bahngleise
Nach weiteren Mining-Verboten in China korrigiert der Bitcoin-Kurs abermals. Doch für PlanB ist das kein Grund, bearish zu sein. Er sieht den Kurs bei mindestens 135.000 US-Dollar in diesem Jahr.
 
Source: BTC-ECHO

Der Beitrag Trotz Bitcoin-Korrektur: PlanB sieht BTC bei 135.000 USD im Dezember erschien zuerst auf BTC-ECHO.

Bitcoin Hash Rate Hits New All-Time High of Nearly 100 EH/s

The Bitcoin mining hash rate has hit a new all-time high of 98.5 EH/s as of 10 September 2019. This is up roughly 300% since December when the hash rate dropped as low as 32 EH/s, coinciding with Bitcoin’s bear market low near USD 3,000.

Additionally, this new all-time high hash rate is 60% higher than the peak of 62 EH/s recorded in August 2018 before the bear market began to cause the mining industry to contract. In other words, the Bitcoin mining industry is now far healthier than ever before, and the security of the Bitcoin network is higher than ever before.

Bitcoin mining difficulty is also at a new all-time high of nearly 12 trillion, meaning it is harder than ever before to mine Bitcoin, or equivalently each unit of hash rate earns less Bitcoin. This is due to a new line of application-specific integrated circuits (ASICs) with 55 TH/s of mining power hitting the market this summer. If it is assumed that the hash rate rise since June is all due to these new 55 TH/s ASICs, that means over half a million of these top of the line mining rigs have come online, which would generate USD 1 billion of revenue for Bitcoin mining manufacturers.

It remains to be seen if the Bitcoin mining hash rate continues to rise from this all-time high. The Bitcoin price will have to rise off of the $10,000 level in order to make that happen.

 

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Bitcoin Mining Technology Approaching the Quantum Tunneling Limit

Bitcoin Mining Technology Approaching The Quantum Tunneling Limit

Bitcoin Mining Hash Rate Has Seen Nearly Exponential Growth Long Term

The Bitcoin mining hash rate has seen an explosive and nearly exponential increase long term, rising through 1 GH/s in July 2010, 1 TH/s in 2011, 10 TH/s in 2012, 1 PH/s in 2013, 100 PH/s in 2014, 1 EH/s in 2016, 10 PH/s in 2017, and as high as 80 PH/s in July 2019, equivalent to 80 million TH/s and 80 billion GH/s. This rapid rise in mining hash rate has been partially fueled by the price of Bitcoin increasing from USD 0.01 in 2010 to over USD 10,000 currently, causing people around the world to compete to get a share of the lucrative Bitcoin mining block reward, which amounts to over USD 100,000 every 10 minutes currently. The other reason that Bitcoin’s hash rate has been rising so rapidly is that the demand for mining technology has caused manufacturers to develop mining rigs with the newest, most powerful, and most efficient technology.

For example, 7 nm chips, meaning the transistors on the chip are 7 nm in size, are the most powerful chips used commercially today. By November 2018, Bitmain had already released mining rigs which utilize 7 nm chips. This was a major jump for the company, since previously 16 nm chips were the best that Bitmain offered. Currently, the most powerful mining rig that Bitmain produces is the Antminer S17 which has a hash rate of 53 TH/s, and this far exceeds the Antminer S1 which had a hash rate of only 0.18 TH/s.

We are officially announcing the release of our new 7nm miners which possess industry-leading hash rates designed to mine with the SHA256 algorithm. Two models will be offered, the Antminer S15 and T15. Available for purchase on 11/8. pic.twitter.com/m6HbWGZS1O

— BITMAIN [Not giving away ETH] (@BITMAINtech) November 6, 2018

Chips with Smaller Transistors Fueling Hash Rate Growth

This massive increase in hash rate is due to mining rigs using chips with smaller and smaller transistor sizes, up to the present-day, cutting-edge 7 nm chips. A very important aspect of decreasing the transistor size is that exponentially more transistors can be fitted onto a single chip, which increases the energy efficiency of mining rigs. For example, the Antminer S1 has an energy efficiency of 0.0005 TH/J, while the Antminer S17 has an energy efficiency of 42 TH/J. This represents an 8.4 million percent increase in energy efficiency from the Antminer S1 to the Antminer S17.

The increase in energy efficiency that results from mining rigs using chips with smaller and smaller transistors is what has paved the way for the explosive rise in Bitcoin mining hash rate. This is because the profitability of Bitcoin mining is primarily determined by the electricity cost, so if energy efficiency had not drastically increased from smaller transistors, then the profitability per hash rate would be much lower. Thus, the total Bitcoin mining network hash rate would be much lower in the absence of transistor size decreases.

Quantum Tunneling Suppressing the Evolution of Transistor Technology

Transistors will have to become smaller and smaller on chips in order to sustain the nearly exponential long term increase in Bitcoin mining hash rate. However, quantum tunneling is a problem for chips with transistors smaller than 7 nm.

Quantum tunneling can be explained by the concept of wave-particle duality. Essentially an electron, which is the fundamental building block of all computer systems, is both a particle and a wave simultaneously. For transistors of 7 nm and bigger an electron stays in its appropriate channels, and the computer functions properly. However, for transistors smaller than 7 nm, the wave nature of an electron can cause it to literally pass through barriers in a transistor, causing leakage of electrons.

In simple terms, if a transistor is small enough, then an electron can teleport through the physical barriers in a transistor. This results in the computer not functioning properly.

The immediate effect already being felt due to quantum tunneling is that Moore’s Law is breaking down. Moore’s Law states that the number of transistors on a chip doubles every two years, leading to an exponential long term increase in computer processing power. However, as transistor sizes decrease below 7 nm it is taking longer and longer to research, develop, and mass produce the evolved next generation of transistors.

For example, transistors from 22 nm to 7 nm use fin field-effect transistor technology (FinFET), but 5 nm transistors required a completely new technology called multi-gate field-effect transistors (MuGFET). The most cutting-edge 3 nm transistors, which are still in the research and development stage, have required yet another breakthrough called gate-all around field-effect transistors (GAAFET). Samsung aims to manufacture 3 nm transistors by 2021, although this is just a projection since it takes years to perfect new transistor paradigms.

Notably, 3 nm transistors are only expected to bring a 20% increase in power and performance, versus the 30% to 40% increase seen during previous transistor evolutions.

Essentially, scientists are developing completely new technologies in order to combat quantum tunneling and to try to stay on pace with Moore’s Law, but the time it takes to develop smaller transistors is increasing, and most importantly, these next generations of transistors are bringing lesser improvements in energy efficiency and processing power.

The Exponential Increase in Bitcoin Mining Hash Rate May Slow down Due to Quantum Tunneling

Therefore, Bitcoin mining technology appears to be approaching an imminent roadblock due to quantum tunneling, and this could slow down the rise in Bitcoin mining hash rate. That being said, Bitcoin mining hash rate also depends on Bitcoin’s price, so if Bitcoin’s price manages to rise strongly long term, then the hash rate could still increase nearly exponentially. On the other hand, if Bitcoin’s price increases slowly over the long term, then the hash rate would essentially plateau.

Also, it is possible that scientists could perfect quantum computing, which would allow Moore’s law to continue. That being said, quantum computing is still in its embryonic stages, and major technology companies are generally focused on making smaller classical transistors in order to increase the power and performance of computers, at least for now.

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Bitcoin Hash Rate Hits 4-Month High, Sparks Optimism

Bitcoin Hash Rate Hits 4 Month High, Sparks Optimism

Bitcoin’s hash rate has reached the highest levels seen since November 2018. The increase in mining power suggests profits available at the current spot price as well as potentially expectations for a future price increase.

Surpassing 52 quintillion hashes per second Tuesday 19 March, mining difficulty has changed little for the last month or so, meaning new miners have had an easier time bringing their rigs online.

As well as benefiting the security of the Bitcoin network by adding more hash power, it shows growing confidence in the network’s future as more resources are invested in mining operations.

Taking to Twitter to comment on hash rate movements last year, Casa CTO Jameson Lopp proclaimed:

”Hashrate follows price… Miners are speculators too!”

Hashrate follows price. Some folks believe price follows hashrate, possibly because hashrate doesn’t simply track ~spot~ price, but rather tracks some ~speculative~ future price. Miners are speculators too!

— Jameson Lopp (@lopp) June 23, 2018

Concerns were raised over low hash rates in alignment with price plummets in 2018 as less efficient mining rigs were disabled to avoid operating at a loss, although the remaining miners benefitted from steady difficulty rates.

Mining difficulty is expected to increase again shortly, however, given this hash rate peak with more miners expected to join the network.

 

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Bitcoin Mining Difficulty Sees Sharpest Decline in 7 Years

Bitcoin mining difficulty was adjusted downwards 15.13% on 3 December 2018, the sharpest percentage decrease in difficulty since November 2011, and by far the biggest downward adjustment in difficulty by magnitude. This follows a 7.39% downward adjustment on 16 November.

Overall, Bitcoin’s mining difficulty has fallen from 7.45 trillion in early October to 5.65 trillion currently. This has coincided with a decrease in Bitcoin’s hash rate from a record high of 62 EH/s to 32 EH/s as of 2 December. This implicitly suggests that 30 EH/s of Bitcoin’s mining hash rate, which represents billions of US dollars of mining equipment, has been turned off due to no longer being profitable. The driving force behind this is the fall in Bitcoin’s price from USD 6,500 to the USD 3,500-4,000 level during the latter half of November 2018.

The Bitcoin mining difficulty adjusts every 2,016 blocks, which is roughly every two weeks, in order to maintain Bitcoin’s block time at 600 seconds. This is because if Bitcoin’s hash rate rises, then block times become shorter at constant difficulty, and if Bitcoin’s hash rate decreases then block times become longer. Indeed, Bitcoin’s block time had risen to 700 seconds before the most recent difficulty adjustment took effect, so the Bitcoin network was much slower than usual this past week. Without difficulty adjustments, the total supply of 21 million Bitcoins would have been mined already, which would have led to strong downward pressure on Bitcoin’s price, as well as a quick end to the Bitcoin mining industry as we know it. Further, this would lead to the Bitcoin network being much less secure, which is unacceptable, and a primary reason as to why periodic mining difficulty adjustments are essential.

The downward difficulty adjustment is actually good news for Bitcoin miners that are still mining, since the 20% decrease in mining difficulty over the past month directly correlates to a 20% increase in Bitcoin mining revenues per unit of hash rate. Increases in mining profits will likely be short-lived, however, since a significant fraction of that 30 EH/s of rigs which have been shut off due to lack of profitably will likely be turned on again.

Logically, the 20% increase in Bitcoin mining profits per unit of hash rate is a good environment for new miners to enter the game, but the abundance of mining rigs in the world that are sitting idle will probably beat new miners to the punch.

 

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One of the Largest Cryptocurrency Mines in North America Begins Hashing

After months of planning, DMG Blockchain Solutions has begun mining for cryptocurrency at one of the largest cryptocurrency mines in North America. The mine is in a 27,000 square foot building in British Colombia, Canada, and has begun operations with 60 MW of power, with plans to ramp up to 85 MW – all clean hydroelectric energy that is off-grid. This is enough electricity to power 50,000 homes.

Assuming this new cryptocurrency mine uses the most efficient Bitcoin mining chips – the 7 nm chips that were developed by Bitmain which operate at 0.042 W/GH – the mine will operate at 1.4 Exahash/s at 60 MW, and 2 Exahash/s at 85 MW. With the current Bitcoin network hash rate averaging 50 Exahash/s, this represents 2.8-4% of the total hash rate. Doing a rough calculation, this new cryptocurrency mine would produce 50-70 Bitcoins per day, worth USD 320,000-440,000 per day. This may be an overestimate since the mining facility might not be using 7 nm chip technology, and some of the electricity may be used for other infrastructure associated with the mining farm.

One interesting thing to note is the creator of Bitcoin, Satoshi Nakamoto, was able to mine 50 Bitcoins every 10 minutes with a simple personal computer that barely used electricity. Ten years later today, it takes a 34-acre mining farm using 60 MW of electricity to produce 50 Bitcoins in a day.

It has taken a year to build this cryptocurrency mining supersite. A road and a new power substation had to be produced for the site, since the mining operation uses its own power grid fed by hydroelectric power, and does not interact with the normal consumer grid of British Colombia.

The CEO of DMG Blockchain Solutions, Dan Reitzik, said, “DMG now proudly owns one of the largest, most cost-efficient, bitcoin mining facilities in North America – and we’re doing it in a responsible way with the local community. It was an audacious undertaking, but DMG’s executive team has been in the mining space for years, and we have the know-how and connections with the utilities and government agencies to pull it off.”

On a final note, the creation of cryptocurrency mining supersites like this new one in British Colombia may be forcing individual miners out of the Bitcoin mining game permanently.

 

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