On September 4, 2019, Bitcoin is trading at $10,594 with a market capitalization of approximately $189.8 billion, and the network’s security infrastructure has never been stronger. The hashrate — the total computational power dedicated to mining Bitcoin — is surging toward record territory, reinforcing the blockchain against attacks and signaling deep institutional confidence in the world’s first cryptocurrency.
TL;DR
- Bitcoin hashrate approaching 80 EH/s, with projections to reach 100 EH/s by late 2019
- BTC dominance at 70%, highest since March 2017, reflecting mining concentration on the flagship cryptocurrency
- Network difficulty climbing as next-generation ASIC miners come online globally
- Mining industry recovering strongly from crypto winter, with major operations expanding
- Growing institutional interest from traditional finance validates Bitcoin’s long-term security thesis
The Hashrate Security Shield
Bitcoin’s hashrate serves as the backbone of its security model. Every exahash per second represents an enormous amount of computational work that an attacker would need to overcome in order to manipulate transactions. As of September 2019, the network is processing approximately 80 quintillion hashes per second — a figure that has grown roughly 40% since the beginning of the year alone.
This growth has been driven by several factors. First, the recovery in Bitcoin’s price from below $4,000 in late 2018 to over $10,500 by September 2019 has restored profitability for miners operating efficient hardware. Second, the deployment of next-generation mining equipment — including the Bitmain Antminer S17 series and competitors from MicroBT and Canaan — has dramatically improved hash-per-watt efficiency, making it economically viable to deploy more machines.
The geographic distribution of mining has also continued to evolve. While China still commands a significant share of global hashrate, regions including North America, Central Asia, and Northern Europe have attracted growing mining operations, drawn by cheap renewable energy sources and increasingly favorable regulatory environments.
Mining Difficulty Adjustments Keep Rhythm
Bitcoin’s built-in difficulty adjustment mechanism has been working as designed throughout 2019. Every 2,016 blocks — approximately every two weeks — the network recalibrates how difficult it is to find a valid block. As more hashpower comes online, the difficulty increases, maintaining the target 10-minute block time.
Throughout 2019, the trend has been overwhelmingly upward, with only occasional downward adjustments when temporary hashrate fluctuations occurred. For example, the hashrate on September 16, 2019, would hit 101.23 EH/s before a temporary dip to 88.96 EH/s the following day — a 12% swing that illustrates the volatility inherent in mining operations. Despite these short-term fluctuations, the overall trajectory has been decisively bullish for network security.
Institutional Mining and the Road to Halving
The institutionalization of Bitcoin mining is accelerating. Major mining operations have been raising capital, securing cheap energy contracts, and building industrial-scale facilities designed to operate for years. This professionalization of mining is a far cry from the early days when hobbyists could mine Bitcoin on their laptops.
The upcoming halving in May 2020, which will reduce the block reward from 12.5 BTC to 6.25 BTC, is adding urgency to the expansion race. Miners want to accumulate as much hashrate as possible before the revenue cut, knowing that the subsequent price appreciation — if historical patterns hold — will more than compensate for the reduced block reward.
Companies like Copper Technologies are now holding between $100 million and $500 million in crypto assets for institutional clients, and firms like JST Capital — founded by veterans from UBS, Royal Bank of Scotland, and Bank of America — are providing sophisticated financial tools to institutional crypto investors. This institutional infrastructure buildup validates the thesis that Bitcoin mining is becoming a mature, professional industry.
Bakkt and the Institutional Gateway
The imminent launch of Bakkt, a subsidiary of the Intercontinental Exchange (ICE) — the parent company of the New York Stock Exchange — represents another milestone for Bitcoin’s institutional credibility. Bakkt is preparing to offer physically settled Bitcoin futures, providing regulated exposure to BTC for institutional investors who have been sitting on the sidelines.
For miners, the introduction of regulated futures markets creates new hedging opportunities. Miners can lock in future prices for their BTC production, reducing the revenue volatility that has historically made mining a boom-and-bust business. This financialization of Bitcoin mining is expected to attract even more institutional capital to the sector.
Why This Matters
Network security is Bitcoin’s most fundamental value proposition. Without a robust, decentralized mining ecosystem, the entire system would be vulnerable to attack and manipulation. The hashrate surge of 2019 — up 40% year-to-date and approaching 100 EH/s — demonstrates that Bitcoin’s security is strengthening even as the market recovers from one of its deepest downturns. For investors, developers, and businesses building on Bitcoin, this growing hashpower provides the foundation of trust that makes the entire ecosystem viable. The stronger the network, the more valuable Bitcoin becomes as a store of value and medium of exchange.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making any investment decisions.
80 EH/s felt massive in 2019. we are at 700+ now and people still say bitcoin has a security budget problem
rig_count_ the security budget FUD was wrong then and its wrong now. fees cover the gap as block rewards shrink, hashrate keeps climbing
approaching 80 EH/s seemed huge then. we are at what, 10x that now? the growth trajectory is insane
mining industry recovering strongly from crypto winter. famous last words given what happened in march 2020
black swan events dont show up in hashrate projections. COVID crushed mining ops across china temporarily
bear_signal_ covid didnt crush mining for long though. hashrate recovered within 2 months and kept climbing. miners are stubborn
BTC at $10,594 with 70% dominance then and similar dominance now but 50x the market cap. the security model scales exactly like the whitepaper said it would
Lars E. the dominance comparison is spot on. 70% then and 70% now but the hash rate went from 80 EH/s to 600+. security scaled, fees did not. still waiting for layer 2 to catch up
BTC dominance at 70% was the last time altseason was truly dead. fast forward 2 years and it hit 73% again. some things never change
BTC at $10,594 with 70% dominance. people forget how bitcoin-heavy 2019 actually was before the defi explosion
70% BTC dominance in 2019 feels like a dream for altcoin holders now. everything has changed except BTC being the anchor
80 EH/s in 2019 and now we are past 800. ten years of hashrate growth and the network has literally never gone down for even one second
the 100 EH/s by late 2019 projection landed way early, network crossed it within a month of this piece. ASIC shipping forecasts have always been too conservative
80 EH/s approaching 100 was huge in 2019. now we are past 600 EH/s and people still complain about network security. the growth has been exponential
Bryce M. people said 100 EH/s was a bubble in 2019. now we are past 600 and the same crowd moved to complaining about energy usage instead. goalposts on wheels
comparing 80 EH/s to 600 is misleading though. the network grew but so did centralization in industrial farms. home mining is basically dead
ran s9s in a garage back then, shut it down when the s19 fleet guys showed up. centralization take is right, but difficulty adjusting this smooth is the upside nobody planned for
BTC dominance at 70 percent back then. its still around 50-55 now. the altcoin rotation started right after this article was written and never really stopped
difficulty climbing while price was 10K meant miners were betting big on the halving cycle. they were right. six months later COVID hit and everything changed
80 EH/s felt massive back then. now we are past 600 EH/s and people still say the network is insecure. the scaling debate was never about actual security
Helmi R. exactly. the same crowd said 80 EH/s was centralized because of a few chinese farms. now mining is more distributed than ever and they moved the goalposts again
BTC dominance at 70 percent in sept 2019 was the last gasp of the old cycle before defi summer changed everything. wild to think alts barely existed back then
BTC dominance 70 pct in 2019 and people still thought alts were the play. some things never change
10K BTC with 80 EH/s was the best risk reward entry in mining history. s19pros were cheap, difficulty was manageable. now you need 5x the capex for half the margin
Diego F. exactly. s19 pros at 3K retail with BTC at 10K was free money. same setup now costs 15K per rig with diminishing returns