Bitcoin’s hashrate surged by about 50% in 2024, marking the seventh consecutive period of growth and setting the stage for continued increases. The hashrate, which measures the computational power required to mine a Bitcoin block in a proof-of-work blockchain, is on track to reach 1 zettahash per second (ZH/s) before the next halving event, which is expected in approximately 3.5 years. This trend is creating pressure for miners to secure cheaper power sources and invest in more efficient mining technology.

With a consistent annual growth rate of 20%, Bitcoin’s average hashrate could reach 1,000 exahash per second (EH/s) or 1 ZH/s by 2027. Since 2020, the hashrate has increased at an average rate of 65% per year, and it currently stands at around 787 EH/s, based on a seven-day moving average, according to data from Glassnode. The hashrate is a crucial factor in miner profitability—higher hashrates often lead to increased energy consumption, making it essential for miners to optimize their operations. It also plays a key role in strengthening the network’s security, which has risen by 56% over the past year.

The rate of growth picked up speed in the second half of 2024, especially after April’s halving event, when block rewards were reduced by 50% to 450 BTC per day. This reward cut put pressure on miners’ revenues, forcing some to pivot their operations. Some miners turned to AI computing, while others opted to buy Bitcoin from the market instead of continuing to mine it.

Once Bitcoin’s hashrate reaches 1 ZH/s, miners will have to explore innovative solutions to stay profitable and adjust to a more demanding market environment. It’s possible that the hashrate has already touched 1 ZH/s for an individual block, as suggested by a post on X, but such readings are not fully reliable due to the probabilistic nature of mining, variations in block times, and short-term fluctuations in network conditions. The industry standard for accurate measurement is typically a seven-day moving average to account for these factors.

In addition to the rising hashrate, the difficulty of mining blocks has also increased. Since October, Bitcoin’s network has seen seven consecutive positive difficulty adjustments, bringing the current difficulty level to 109.78 trillion (T). Difficulty adjustments occur every 2,016 blocks to ensure that blocks are mined approximately every 10 minutes. The last time Bitcoin experienced seven consecutive positive adjustments was after China’s mining ban in 2021, which led to a 50% reduction in the hashrate. This time, however, both the hashrate and difficulty are rising together, indicating a more resilient and stable mining ecosystem.