Bitcoin’s hashrate saw a notable 50% increase in 2024 and is on track to continue its growth for the eighth consecutive time. The hashrate, which represents the computational power required to mine a block in a proof-of-work blockchain, is expected to hit 1 zettahash per second (ZH/s) before the next halving event, which is projected to occur in about 3.5 years. This surge in computational power is putting pressure on miners to secure cheaper energy deals and invest in more efficient mining equipment.
If the growth rate continues at a modest 20% annually, Bitcoin’s average hashrate could reach 1,000 exahash per second (EH/s), equivalent to 1 ZH/s, by 2027. Since 2020, the hashrate has grown by an average of 65% each year and is currently around 787 EH/s, based on a seven-day moving average, according to Glassnode data. The hashrate plays a crucial role in the profitability of Bitcoin miners—higher hashrates generally lead to higher energy costs, making it essential for miners to optimize their operations. Additionally, a higher hashrate contributes to improved network security, which has increased by 56% over the past year.
The pace of growth has accelerated in the second half of 2024, particularly after April’s halving event, when block rewards were cut by 50% to 450 BTC per day. This reduction in rewards put further strain on miners’ revenues, forcing some to diversify their operations. Some miners turned to artificial intelligence (AI) computing, while others chose to purchase Bitcoin on the open market instead of mining it.
When Bitcoin’s hashrate reaches 1 ZH/s, miners will need to adopt more creative strategies to remain profitable and adjust to a more competitive market. It’s possible that the hashrate has already touched 1 ZH/s for a single block, though such readings can be inaccurate due to the probabilistic nature of mining, block time variations, and short-term network fluctuations. Industry standards typically use a seven-day moving average to account for such discrepancies and ensure more reliable measurements.
In addition to rising hashrate, the difficulty of mining blocks has also increased. Since October, there have been seven consecutive positive difficulty adjustments, bringing the difficulty level to 109.78 trillion (T). Difficulty levels are recalibrated every 2,016 blocks to ensure that blocks continue to be mined on average every 10 minutes. The last time the network saw seven consecutive positive adjustments was after China’s mining ban in 2021, when the hashrate temporarily dropped by 50%. This time, however, both the hashrate and difficulty are rising together, indicating a more stable and robust mining environment.
