The computing power of Bitcoin might achieve a major benchmark long before the upcoming halving.

Bitcoin’s hashrate surged by approximately 50% in 2024 and is set to rise for the eighth consecutive time, demonstrating ongoing growth in the network’s computational power. The hashrate, which measures the computational effort required to mine a block in a proof-of-work system, is projected to hit 1 zettahash per second (ZH/s) before the next halving event, which is about 3.5 years away. This rising hashrate is increasing pressure on miners to secure affordable energy contracts and invest in more efficient hardware.

If the growth rate remains at a steady 20% per year, Bitcoin’s average hashrate could reach 1,000 exahash per second (EH/s)—the equivalent of 1 ZH/s—by 2027. Since 2020, the hashrate has grown by an average of 65% annually, and it currently stands at around 787 EH/s on a seven-day moving average, according to Glassnode data. This metric is crucial for miner profitability: higher hashrates often translate to increased energy costs, which pushes miners to fine-tune their operations. Additionally, a higher hashrate strengthens network security, which has increased by 56% in the past year alone.

The growth rate of the hashrate accelerated in the second half of 2024, particularly after April’s halving event, which saw block rewards halved to 450 BTC per day. This reduction in rewards squeezed miner margins, leading some to pivot their operations. Some miners turned to artificial intelligence (AI) computing, while others chose to buy Bitcoin directly from the market rather than mine it.

When Bitcoin’s hashrate reaches 1 ZH/s, miners will need to find even more inventive ways to maintain profitability and navigate the increasingly competitive market. It’s possible that the hashrate has already surpassed 1 ZH/s for individual blocks, as indicated by a post on X, though such data is unreliable due to the probabilistic nature of mining, variations in block times, and short-term network fluctuations. To account for these, the industry standard uses a seven-day moving average to ensure more accurate readings.

In addition to the rising hashrate, the mining difficulty has also increased. Since October, the blockchain has seen seven consecutive positive difficulty adjustments, with the current difficulty set at 109.78 trillion (T). Difficulty levels adjust every 2,016 blocks to ensure blocks are mined approximately every 10 minutes. The last time the network experienced seven consecutive positive adjustments was following China’s mining ban in 2021, which resulted in a 50% drop in the hashrate. This time, however, both the hashrate and difficulty are rising together, suggesting a stronger and more resilient mining ecosystem.