Bitcoin’s hashprice broke above $0.37 on Monday as the leading cryptocurrency continued pushing toward the $60,000 price level. So what?
Hashprice is a metric that tracks the market value of hashrate at a rate of dollars per terahash per second per day. If Bitcoin’s price climbs faster than hashrate increases, hashprice goes up. If Bitcoin’s price drops slower than hashrate decreases, hashprice also goes up.
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Hashprice at $0.37 represents a more than 25% increase in revenue per terahash for miners since the end of September. That’s a nice boost in profits!
Bitcoin’s hashrate recovery makes the hashprice jump even more special for miners. As more hashing power comes online, all things being equal the value of existing hashrate becomes less valuable. But not this month!
Even though hashrate continues to rebound significantly, paring its losses from China’s crackdown on mining, since the start of October, Bitcoin’s price appreciation has outpaced hashrate growth. This means more money for miners even though more ASICs are coming online.
Miners certainly wouldn’t mind this upward hashprice trend continuing.
Even though miners aren’t even halfway through October yet, but the new month’s average hashprice is already the fourth highest from the past year.
All indications point toward continued hashrate growth through the end of the year. Dozens of North American miners are finishing infrastructure expansions. Miners from China continue to relocate to the US, Canada, Kazakhstan, Russia, and other parts of the world.
So long as the price of bitcoin outpaces the growth in hashrate, hashprice will continue increasing. And higher hashprice always makes for happy miners.