A look into BTC hash rate's surge and its implications
BTC's hash rate—the total computational power securing the network—reached an all-time high in early June despite rising mining difficulty. This milestone underscores the resilience and growing participation in block reward mining, even as the industry faces regulatory scrutiny, energy concerns, and market volatility. The surge in hash rate reflects technological
advancements and the strategic maneuvers of miners adapting to a competitive and dynamic environment.
This article explores the factors driving this record-breaking hash rate, its implications for the BTC network, and what it means for the future of block reward mining.
The hash rate, measured in exahashes per second (EH/s), represents the combined processing power of miners worldwide
competing to find a computationally high number to validate transactions and earn BTC rewards. According to data from
Blockchain.com, the BTC hash rate peaked at approximately 700 EH/s in early June 2025, surpassing previous records set earlier in the year. This surge comes despite a mining difficulty adjustment that reached its all-time high, making it harder for miners to find new blocks. Mining difficulty, which adjusts roughly every two weeks to maintain a consistent block time of about 10 minutes, has been climbing steadily due to increased network participation.
Several factors have contributed to this unprecedented hash rate. First, advancements in mining hardware have played a pivotal role. Companies like Bitmain and MicroBT have released next-generation ASIC (Application-Specific Integrated Circuit) miners with improved efficiency, allowing miners to process more hashes per unit of energy. These machines, such as Bitmain's Antminer S21 Pro, boast efficiencies below 15 joules per terahash (J/TH), a significant improvement over older models. As a result, miners can maintain profitability even as electricity costs and network difficulty rise.
Second, the geographic redistribution of mining operations has bolstered the hash rate. After China's 2021 crackdown on crypto mining, which once accounted for over 60% of BTC's hash rate, miners relocated to regions with favorable regulations and abundant energy, such as the United States, Kazakhstan, and Canada. The U.S. alone now hosts nearly 40% of the global hash rate, driven by access to cheap energy in states like Texas and Wyoming. Additionally, countries like Pakistan have emerged as new players, with plans to allocate 2,000 megawatts (MW) of electricity to Bitcoin mining and artificial intelligence (AI) data centers, as announced at the BTC Vegas 2025 conference. These shifts have diversified the mining landscape, making the network more resilient to regional disruptions.
Third, the rising BTC price, hovering around $100,000 in June 2025, has incentivized miners to ramp up operations. Higher prices increase the value of block rewards (currently 3.125 BTC per block, following the April 2024 halving), offsetting energy and hardware costs. Posts on X highlight that miners are reinvesting profits into expanding their fleets, further driving the hash rate upward. This trend is evident in companies like BitFuFu (NASDAQ: FUFU), which reported a 91% increase in mining output, reflecting the sector's operational growth. The record hash rate has significant implications for the BTC network. A higher hash rate enhances security by making it more difficult for malicious actors to execute a 51% attack, where an entity controls the majority of the network's computational power. With 700 EH/s, the cost of such an attack is prohibitively high, requiring billions of dollars in hardware and energy. This bolsters confidence in BTC as a decentralized and tamper-resistant system, particularly as institutional adoption grows.
However, the hash rate surge also raises challenges. The increased computational power has driven up energy consumption, reigniting debates about BTC's environmental impact. Critics argue that mining's reliance on fossil fuels contributes to carbon emissions, though defenders point to the growing use of renewables. For instance, a 2024 report by the Bitcoin Mining Council estimated that 59% of global mining uses sustainable energy sources, such as hydroelectric and solar power. Miners in regions like Quebec and Iceland are increasingly tapping into green energy to mitigate criticism and reduce costs.
Another challenge is the profitability squeeze for smaller miners. As difficulty rises, those with older hardware or higher electricity costs struggle to compete. This has led to consolidation in the industry, with large-scale operations like Marathon Digital (NASDAQ: MARA) and Riot Platforms (NASDAQ: RIOT) dominating the market. Smaller bitcoin miners are exploring
alternatives, such as joining bitcoin mining pools or adopting cloud mining solutions like BAY Miner's new mobile app, which allows users to mine BTC without owning hardware.
Looking ahead, the record hash rate signals a robust and competitive mining ecosystem, but its sustainability depends on several factors. Continued innovation in hardware efficiency, access to affordable and renewable energy, and supportive regulatory frameworks will be critical. Additionally, the upcoming Bitcoin halving in 2028, which will further reduce block rewards, will test miners' adaptability. For now, the hash rate milestone underscores Bitcoin's enduring appeal and the relentless drive of miners to secure the network.
In conclusion, BTC's record-breaking hash rate in June 2025 reflects a confluence of technological, economic, and
geographic factors. While it strengthens the network's security and highlights the industry's growth, it also brings challenges related to energy use and market dynamics. As the block reward mining landscape evolves, the balance between profitability, sustainability, and decentralization will shape its future trajectory.
Watch: Bitcoin mining in 2025: Is it still worth it?
title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen> Bitcoin Block Reward Mining BTC Hash Rate
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Spectator
11 hours ago
- Spectator
Britain needs to embrace crypto with its own Genius Act
In proposing to sell the government's £5 billion hoard of Bitcoin – accumulated from confiscating the proceeds of crime – Rachel Reeves has earned some keen supporters. But the Chancellor should resist the temptation. It wouldn't be an error quite on the scale of Gordon Brown's sale of half of Britain's gold reserves in 1999 – that occurred right at the bottom of a bear market in gold, while Bitcoin in recent weeks has been trading at record highs. Nevertheless, Reeves would be missing out on the opportunity to build a Strategic Crypto Reserve which could turn out to be many times more valuable in the future. By backing cryptocurrencies rather than disposing of them, she could help the City of London capture an important market and recover some of its long-lost pre-eminence in financial transactions. While Reeves is contemplating cashing in her Bitcoin, the US is going in a very different direction. This month Congress established the GENIUS Act (Guiding and Establishing National Innovation for US Stable coins), which will regulate and encourage the use of 'stable coins' – cryptocurrencies backed by liquid assets such as dollars or short-dated Treasuries. The act will address many concerns about criminals' use of cryptocurrencies by incorporating strong consumer and anti-money laundering provisions. It will mandate the reporting of any suspicious activity involving cryptocurrencies, and ensure that they are backed by low-risk investments such as the dollar, or government bonds. There is an expectation, too, that President Trump will sign an executive order to allow the pension plans of millions of Americans to hold cryptocurrencies. The US approach towards cryptocurrencies is both liberating and reassuring for consumers. The Genius Act is a recognition of the massively-expanding crypto market – worth $5.7 billion globally last year – and an effort rightfully to bring it inside the regulatory tent for the first time, rather than to leave it at the mercy of private operators. It introduces safeguards which might prevent a future scandal along the lines of the discredited scheme operated by the now-jailed Sam Bankman-Fried. It introduces supervision to ensure that those trading stable coins retain adequate liquidity, and introduces a proper framework for dealing the currencies. Many people remain deeply suspicious about cryptocurrencies and will balk at the idea of governments having anything to do with them. Yet they are not going to go away. There is a generational divide in attitudes towards cryptocurrencies. While many older people continue to see them as a scam, many younger people have a similar attitude towards fiat currencies – paper money issued by governments and central banks which is not backed by gold or any other valuable commodity. It is time to recognise that fiat currencies are not the only ones that can be used in commercial transactions, and there is a good reason to explore alternatives. Blockchain, the technology behind cryptocurrencies, is increasing the speed at which transactions can take place. As for the argument that Bitcoin is not a proper currency because of the volatility in price, this needs to be absorbed as a warning to investors. It should not be used as a reason to prevent holding it, say, in a pension fund. Many corporations, too, once had reservations about cryptocurrencies yet have since been converted. Those who decline to be involved face losing out. Look at analytics company MicroStrategy, whose shares have increased fourfold over the past year as it has become the largest corporate holder of Bitcoin. The choice for our own government lies between taking action to incorporate cryptocurrencies into mainstream finance – or to watch as the US and others take the initiative. We need to be part of cryptocurrency regulation just as we were part of the post World War II Bretton Woods agreement, which established a regime for creating exchange rate stability, and which also established the International Monetary Fund (IMF) and the dollar peg. Stable coins, in fact, are becoming a new dollar peg. One of the consequences of the GENIUS Act, if it is not followed by a similar move here, will be to boost the value of the dollar. In her Mansion House speech, Rachel Reeves rightfully blamed excessive regulation for stifling growth. Yet as well as restricting and encumbering, well-designed regulations can free up markets and encourage growth. Reeves should be looking into a UK equivalent of the GENIUS Act. But in the meantime she should signal her intentions towards cryptocurrencies by retaining the government's £5.4 billion of Bitcoin and have it managed by a City firm. If Reeves will not do this, it is very fertile ground for the Conservatives. Kemi Badenoch will be watching the GENIUS Act with great interest. Fail to embrace cryptocurrency now, and Britain will once again have missed out on the chance to take a lead in an emerging industry. It is critical that the City of London should not lag behind major structural changes in the world or finance. Creating a proper platform in London for trading cryptocurrencies could be the beginning of the City's revival.
Coin Geek
3 days ago
- Coin Geek
Bad week for UK: ‘Crypto' ATM crackdown, BTC sell-off
Getting your Trinity Audio player ready... It was a rough week for all things digital money in the United Kingdom, as reports emerged that the government plans to sell off $7.2 billion (£5.33 billion) in confiscated BTC, rather than stockpiling it as some industry groups have urged. Meanwhile, the U.K.'s digital currency ATM crackdown continued, just as new online research by the U.K.'s top ATM network showed that cash is still the most trusted payment method in the country. UK's digital currency sell-off On July 19, The Telegraph newspaper reported that the U.K. Chancellor, Rachel Reeves, was working with police forces to sell off a stockpile of seized digital assets worth 'at least' £5 billion ($6.7 billion). It's estimated that the U.K. government currently holds around $7.2 billion (£5.33 billion) in confiscated BTC as a result of investigations into frauds, scams, money laundering, and other illicit finance. The report, published Saturday, stated that the U.K. Home Office plans to develop an official digital asset storage system to handle BTC sales and other digital currencies. This is part of a broader effort by the U.K. government, under Prime Minister Keir Starmer's Labour Party, to fill a much-talked-about £22 billion ($29 billion) 'black hole' in the U.K.'s public finances. Selling off over £5 billion worth of BTC would undoubtedly dent this figure, but the rumored move met with a swift and negative response from key voices in the digital asset and finance space. On Monday, trade association CryptoUK called on the government to take 'a long-term view,' arguing that the plan to sell off the nation's confiscated crypto stockpile 'would run contrary' to the country's goal of becoming a digital asset innovation hub. 'We would urge the government to take a long-term view on the holding of crypto and deeply consider what message offloading these digital assets would send to the UK's crypto industry,' said a CryptoUK spokesperson, as reported by tech news site Decrypt on July 21. The trade association added that 'other jurisdictions now hold Bitcoin reserves and Bitcoin treasuries are increasingly popular with companies.' This sentiment was echoed by Nigel Green, CEO of global financial advisory giant deVere Group, who pointed to the example of the United States and its recently announced Bitcoin Reserve. 'If countries like the US, the world's largest economy, are seriously weighing Bitcoin as a reserve, why would the UK liquidate instead?' He argued. 'If we advocate crypto as strategic, then hastily disposing of seized Bitcoin is hypocritical—and harmful.' Green warned that the mooted move would echo past errors and undermine long-term strategy. 'Turning these assets into instant cash is tempting, but it risks repeating historical errors,' said Green, noting that 'they sold gold in a dip, only to regret it years later. We risk replaying that error with Bitcoin.' He emphasized that 'emergency fiscal relief is not always best served by fire-sale tactics.' Green reiterated that 'fiscal pressure shouldn't drive poor asset decisions,' and suggested that, far from being a gamble, BTC could act like digital gold: 'It's scarce, decentralised, and a hedge against inflation.' At the same time as Chancellor Reeves was reportedly discussing with the U.K. police selling the government's substantial holdings of confiscated BTC, the latter was continuing its crackdown on rogue crypto ATMs. Digital currency ATMs under fire again According to a July 17 statement from the Financial Conduct Authority (FCA)—the U.K.'s top finance sector watchdog—two individuals were arrested, and seven digital currency ATMs found and seized, as part of an operation led by the FCA and the Metropolitan Police Service targeting four premises across southwest London. Since January 10, 2021, businesses providing certain digital asset services in the U.K. must be registered with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). Therefore, operating a cryptoasset exchange or a digital currency ATM in the U.K. is illegal without FCA registration. By July 2023, the FCA had announced the shutdown of 26 machines operating unlawfully nationwide. Despite these closures, operating a digital currency ATM in the U.K. is technically still legal, as long as the operator registers with the FCA. However, the FCA has yet to approve a single registration for a digital currency ATM, amounting to an effective ban, in all but name. 'There are currently no legally-operated crypto ATMs in the UK, so using one only supports crime,' said the FCA. 'If you're operating a crypto ATM or exchange illegally, then you should expect serious consequences.' This attitude is not unique to the U.K., as recent months have seen an increasing global crackdown on digital currency ATMs. In the U.S., in February, Senator Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, introduced the Crypto ATM Fraud Prevention Act. It would, amongst other measures, prevent new users from spending more than $2,000 daily or $10,000 over a 14-day period at digital currency ATMs, and require live, verbal confirmation for any transaction greater than $500. In April, Australia followed suit by putting digital currency ATM operators on notice over a lack of AML/CFT checks; and most recently, earlier in July, New Zealand outright banned digital currency ATMs. These crackdowns demonstrate a concern amongst lawmakers and regulators that the digital currency ATM sector is a particular hotbed of illicit finance, fraud, and scams—a feeling that the U.K. general public may well share. Just as the FCA continues to enthusiastically enforce its de facto ban on digital currency ATMs, the U.K.'s main ATM and interbank network published new research showing that cash is still the most trusted payment method in the country. UK still values cash despite growth in digital payments This week, Link, the U.K.'s leading cash access and ATM network, published the results of research into current customer payment and spending habits. It found that 'while contactless card payments are seen as the most convenient and quickest form of payment by a significant majority of consumers, cash is seen as the most reassuring for staying within a budget and fully understanding the cost of shopping too.' According to the research, almost two-thirds of consumers (65%) said cash protects them from fraud, compared to (22%) contactless card and (18%) digital wallets. While contactless, via card, remained 'the most preferred payment method for consumers,' with 40% choosing this option, this number was slightly down on previous LINK research. The publication suggested this 'may reflect the growing popularity of digital wallets such as Apple Pay or Google, which increased over the same period.' In a seeming blow to the digital payments and digital money sectors, the data revealed that 63% of respondents said they were unlikely to go completely cashless in the next 12 months, with only 8% being entirely cashless today, up from 6% in late 2024. The research also saw 85% of respondents highlight the risk of a cashless society and its effect on people who cannot use digital payments yet. 'Cash remains a critical part of the UK's payment landscape,' said Graham Mott, LINK director of strategy. 'This research shows that, while digital payments are growing, cash continues to play a vital role in financial inclusion, budgeting, and consumer choice.' Digital assets were not specifically mentioned as a part of the survey, but the findings that cash remains more trusted than digital payments almost certainly imply that digital assets have a long way to go—in the U.K. at least—before they will be considered a secure and trusted form of payment akin to fiat currency. Watch: How do you build a successful ecosystem? Bring blockchain to the builders! title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Finextra
3 days ago
- Finextra
Accepting Stablecoin and Crypto Payments: What Merchants Must Know About Settlement: By Milko Filipov
As stablecoins and cryptocurrencies become increasingly integrated into corporate payment ecosystems, treasurers in large organizations face critical decisions around settlement options. How payments are settled—that is, the currency in which funds are ultimately received—has profound implications for liquidity management, risk exposure, and treasury operations. Far from a mere technical detail, the choice of settlement method is a strategic lever that can influence your organization's financial resilience, capital efficiency, and compliance posture. In this article we will explore the key considerations of settlement models treasury professionals need to understand to make informed decisions. Offering Multiple Payment Methods to Increase Conversion Merchants often provide several payment options to meet customers' preferences and boost sales. Imagine you run an online store or a marketplace. At checkout, your customers might want to pay with euros or dollars, and you are probably already using adaptive pricing to sell in local currencies across various markets, making buyers feel more comfortable and increasing your conversion rate. Your organization likely has settlement bank accounts in a few major currencies and automatically converts everything to them. Alternatively, buyers may prefer cryptocurrencies such as Bitcoin, Ethereum, or stablecoins—digital assets pegged to fiat currencies but operating on blockchain infrastructure. Just like with traditional payments, you want to offer more options to buyers to increase conversions, while also optimizing your treasury processes for settlement. Offering a diverse range of payment methods broadens your customer base and boosts conversion rates, but it also means you must carefully consider how these payments will be settled on your end. Defining Your Preferred Settlement Currency As a business owner, you might have a clear preference about the currency you want to receive—perhaps you only want euros or U.S. dollars to simplify accounting and avoid market volatility. In such cases, your crypto payment service provider (PSP) will convert the cryptocurrency payment into your chosen settlement currency before paying out. Understanding what settlement currency you want is foundational because it determines how your funds flow and how you manage currency risks. Crypto-to-Fiat Settlement: Minimizing Volatility and Complexity The most common settlement method is crypto-to-fiat. Here, even if customers pay with cryptocurrencies, the PSP converts these payments into fiat currency at current exchange rates and deposits the funds into your bank account. This method is attractive to many merchants because it eliminates the price volatility inherent in cryptocurrencies and simplifies bookkeeping and regulatory compliance. However, convenience comes at a cost—conversion fees are typically higher, so merchants must weigh this expense against the benefit of avoiding crypto volatility. Crypto-to-Crypto Settlement: Flexibility and Cost Efficiency Alternatively, merchants can opt for crypto-to-crypto settlement, where payments are settled directly in cryptocurrencies or stablecoins chosen by the merchant. This allows you to accept a wide variety of cryptocurrencies but receive them consolidated into a preferred digital asset—such as Bitcoin or a stablecoin—helping to manage volatility more cost-effectively than converting to fiat. However, accepting numerous cryptocurrencies may increase conversion fees, and settling in stablecoins carries some counterparty risk tied to the issuer's solvency. Still, this approach can be particularly appealing to crypto-native businesses that want to hold digital assets without the immediate need for fiat conversion. Fiat-to-Crypto Settlement: A Niche but Strategic Option Less commonly, some merchants may prefer fiat-to-crypto settlement, where payments made in fiat currencies are converted by the PSP into cryptocurrencies before being paid out. This approach may suit businesses seeking to accumulate cryptocurrencies as a hedge against currency devaluation or operating in markets where fiat transactions are complicated or costly. While it adds complexity and cost, for specific sectors and regions, fiat-to-crypto settlement can offer strategic advantages. However, it's generally not widespread due to the additional operational demands it places on merchants. Settling in Transaction Currency: Avoiding Conversion Fees and Managing Crypto Holdings Some merchants prefer to settle directly in the transaction currency—the exact currency the customer uses—whether that's a cryptocurrency or stablecoin. By doing so, they avoid currency conversion fees and gain full control over their crypto assets, which can be advantageous if they actively manage cryptocurrency holdings or have suppliers paid in crypto. However, this exposes the business to price volatility and often introduces more complex accounting, legal, and compliance challenges. Flexible Settlement Models for Complex Business Needs For larger enterprises with sophisticated treasury operations, a one-size-fits-all settlement approach often isn't enough. These merchants may require the ability to settle some transactions in fiat and others in crypto based on factors like transaction size, buyer location, or exchange rates. Such flexibility helps align crypto exposure with broader financial strategies—optimizing working capital, hedging currency risks, or managing cost of capital. These advanced options typically require more complex PSP features and integration with payment orchestration platforms but offer powerful control for global businesses. Understanding Settlement Frequency: Timing Matters Beyond the currency itself, the frequency with which settlements occur also matters. Settlement frequency determines how often funds move from the PSP to your bank account or crypto wallet. Options range from instant, real-time settlement—providing immediate access to funds but with higher fees—to automated schedules like daily, weekly, or monthly transfers, offering predictability and ease of cash flow management. Some merchants may prefer manual settlement, initiating payouts only when it suits their business needs. Your choice here should balance liquidity requirements, transaction costs, and internal accounting processes. Clarifying Settlement vs. Payout Terminology Lastly, it's important to distinguish between 'settlement' and 'payout,' terms often used interchangeably but with subtle differences. Settlement refers to the validation and reconciliation of transactions, ensuring that payments are finalized. Payout describes the actual transfer of funds from the PSP to your account or wallet. While these steps are distinct in traditional banking systems due to interbank operations, blockchain-based payments streamline these processes. Understanding this helps clarify the flow of funds and the role your PSP plays in securing and transferring your money. Conclusion: Align Your Settlement Strategy with Your Business Goals Ultimately, the way you settle cryptocurrency and stablecoin payments can significantly impact your business's operational efficiency and financial risk management. Whether you prioritize stability by settling in fiat, cost savings by settling in stablecoins, or flexibility through multi-currency models, understanding these options is key to integrating crypto payments successfully. Choosing the right PSP with transparent and adaptable settlement capabilities will empower your business to embrace the future of payments confidently and strategically. If you are still unsure about the most suitable settlement strategy or how to implement and manage it, a quick and effective way to gain the necessary knowledge is by enrolling in the eLearning course Cryptocurrency and Stablecoin Payments for Businesses from reMonetary. This course offers an end-to-end perspective, covering topics such as the benefits of cryptocurrencies and stablecoins, the conversion process and settlement options, the role of exchanges, a comprehensive overview of the transaction cycle, and the business model and cost structure of a crypto PSP. By the end, you'll have a solid understanding of the crypto PSP landscape, enabling you to make informed, strategic decisions for your organization. The next article will cover the transaction cycle of cryptocurrency and stablecoin acceptance, examining strategic approaches merchants can take and reviewing concepts such as custody models and settlement options.
