What does mining pool hashrate mean? (Does higher mining pool hashrate lead to higher income?)

08/19/2023 07:05 • Daily Digest • 56 views

What does mining pool hashrate mean? Bitcoin mining is measured in electricity consumption, and the hashrate and network effect of blockchain make it effectively resistant to inflation. According to statistics from the Cambridge Alternative Financial Center, the total market value of Bitcoin in 2017 was $4.91 trillion, but in 2018, the market size was only around $21 million. After reaching its peak at the end of 2017, the price of Bitcoin began to decline and has since dropped by half from January 19th onwards.

Based on the current price of Bitcoin, the income per T of BTC is about 0.0000015% (close to zero at the end of 2017). Calculating based on this data would require more than three times the effort to lower the cost. This means that the average return on investment for each Bitcoin is about 0.069%. So, when we put a coin into an exchange or wallet, investors will find it very cheap. Therefore, the size of the mining pool hashrate is the number of coins that users invest.

Does higher mining pool hashrate lead to higher income?

According to Bitcoinist, the higher the mining pool hashrate, the higher the income.

According to statistics from May 10th, 2019 to January 31st, 2019, the prices of mainstream digital currencies such as Bitcoin and Ethereum rose by over 1000% within the year. In the bull market of 2017, due to the continuous price increase, the mining difficulty also kept rising. As a result, the price of BTC once reached the $20,000 milestone. However, by the end of 2020, the prices of Bitcoin and Ethereum quickly dropped to around $20,000. In theory, based on the current price of BTC, the trading volume of BTC/USDT exchange is around $400 million, which has increased by more than three times compared to December last year, which was about $40 million. Since 2018, the number of BTC on the BTC/USDT exchange platform has tripled, reaching 50 million (as of the time of writing).

According to CoinMarketCap data, the proportion of BTC/USD market’s circulating supply is the square root of the hashrate in a network. In other words, when a block is packed into a new block and a new block is generated, this block will include new blocks, also known as “block rewards”. This means that miners can receive corresponding Token rewards as long as they invest a certain amount of ETH.

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What does mining pool hashrate mean? (Does higher mining pool hashrate lead to higher income?)

Does higher mining pool hashrate lead to higher income?

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