The effects of the hashrate surge are already evident with block explorers registering 16 blocks mined in one hour just days ago. This is way above the six blocks per hour on average the network is used to.
There has been some speculation as to why this surge is happening now. Some of the proposed arguments include:
Launch and turning ON of the new Asics miners
Cheaper electricity costs in the Sichuan province which accounts for more than 50% of the entire Bitcoin hashrate
Increasing bitcoin price which translates to more revenue for miners
The upcoming halving is also most likely going to put smaller, less prepared miners out of business as rewards are cut by half.
According to Chun Wang, Co-founder and Managing Partner of F2Pool, the largest bitcoin mining pool in the world, controlling 20% of the collective computational energy, hashrate:
“Often, larger farms have better economies of scale and therefore are able to survive reductions in the mining reward or price volatility.”
With Binance getting onto the bitcoin and crypto mining space with the new Binance Pool, which is likely to account for about 2% hashrate market share, it will be interesting to see how these emerging mining pools affect the network and ecosystem post-halving.