Bitcoin’s hash rate could break a key threshold well in advance of the next halving.

Bitcoin’s hashrate grew by nearly 50% in 2024, and it is on track for an eighth consecutive increase. This surge in computational power, which is vital for mining blocks in a proof-of-work blockchain, is expected to push the hashrate to 1 zettahash per second (ZH/s) ahead of the next halving event, slated to occur in about 3.5 years. Miners are now under increased pressure to secure lower-cost energy contracts and enhance their hardware efficiency to keep up with the rising difficulty.

If the growth trend continues at a steady 20% annually, the average hashrate could reach 1,000 exahash per second (EH/s), or 1 ZH/s, by 2027. Since 2020, the hashrate has been growing at an average annual rate of 65%, with the current level at approximately 787 EH/s based on a seven-day moving average, according to Glassnode data. The hashrate is a key determinant of miners’ profitability, as higher hashrates generally lead to increased energy consumption, prompting miners to fine-tune their operations. It also contributes significantly to the security of the Bitcoin network, which has improved by 56% in the last year.

The pace of growth in Bitcoin’s hashrate has accelerated since the second half of 2024, particularly after the April halving event, which halved the block reward to 450 BTC per day. This reduction in rewards has squeezed miner profits, forcing some to diversify their operations. In response, some miners shifted to artificial intelligence (AI) computing, while others turned to buying Bitcoin from the market rather than mining it directly.

As Bitcoin’s hashrate approaches 1 ZH/s, miners will need to find more creative ways to maintain profitability and adapt to the increasingly competitive market. It’s possible that the hashrate has already reached 1 ZH/s for a single block, as suggested by a post on X, although readings based on single blocks can be inaccurate due to the probabilistic nature of mining, block time variations, and short-term network fluctuations. The industry typically relies on a seven-day moving average to provide more accurate and reliable data.

Along with the rising hashrate, the difficulty of mining has also been increasing. Since October, Bitcoin’s network has undergone seven consecutive positive difficulty adjustments, bringing the current difficulty level to 109.78 trillion (T). Difficulty is recalibrated every 2,016 blocks to ensure a consistent block time of approximately 10 minutes. The last time the network experienced seven consecutive positive adjustments was after the mining ban in China in 2021, which caused the hashrate to drop by 50%. This time, however, both the hashrate and difficulty are rising in tandem, signaling a more stable and robust network.