Bitcoin Network Strengthens as Hashrate Skyrockets

The Bitcoin network has become more secure than ever, with its hashrate surging to an all-time high of over 350 exahashes per second (Ex/s), up from 89 Ex/s in July 2021 when China banned Bitcoin mining. This significant growth can be attributed to increased mining activity in the United States and the utilization of cheap energy sources.

Innovation in the mining industry continues with Jack Dorsey’s Block, which recently completed the prototype of a 5-nanometer Bitcoin mining ASIC. The company is now moving towards developing a 3-nanometer version. Naoise Irwin, Senior Product Lead of Mining Hardware at Block, announced that they expect to receive prototypes of their 5-nanometer design back this fall. This marks the first time a Western company has manufactured Bitcoin ASICs since their invention around 2013.

The manufacturing of ASICs has predominantly taken place in China, which has been a potential risk due to the Chinese Communist Party’s hostility towards cryptocurrencies since 2014. The need for domestic production of ASICs has been apparent for some time, and the rise in hashrate may reflect these developments.

The increase in hashrate can be attributed to two main factors: the utilization of cheap energy sources such as flared gas, and advances in ASIC development.