Network Hash Rate
The network hashrate is an indication of the total computing power competing to secure the network. Network hashrate can be used as a proxy for network security, increasing the barrier to entry for nefarious actors. Hashing the bitcoin network produces rewards or revenues to the miners and costs them in hardware and electricity expenses. The difference between the marginal revenue and marginal cost of hashing the network tells us about the viability of the mining infrastructure.
Miner revenues started the year at a 12-months low of around $5.4M a day, a level not reached since August’17. Revenue continued to stay within the $10M per day range for the first four months of the year, before reaching a high of $18.7M on 29th May’19.
Network hash rate also increased in-line with revenues, almost doubling since the beginning of the year. The month hash rate closed just shy of 60M TH/S, marginally under the ATH reached in September last year.
Hash Power Distribution
Distribution of hash power is another key metric for assessing censorship resistance. Bitcoin’s mining algorithm requires a minimum of 51% of the network to collude for a successful attack.
We monitor the distribution of mining capacity across competing pools to identify the current viability of such an attack. As of May’19, the largest mining pool is btc.com with 21% of SHA-256 hashing power. Antpool is second with 12.3%, followed by F2Pool at 10.7%. At this point in time a successful attack requires a minimum of four competing pools to collude.