The Hardware Landscape
As September 2017 draws to a close, the Bitcoin mining ecosystem finds itself in a paradox. While prices have tumbled more than 40% from their all-time high of $5,013.91 reached on September 2, the network’s hashrate continues its relentless upward march. Miners around the world are processing more hashes than ever before, even as Chinese regulators attempt to strangle the country’s cryptocurrency exchange infrastructure.
The Bitcoin network hashrate sits at approximately 6.5 exahashes per second as of mid-September, a staggering increase from the 2.5 EH/s recorded at the start of the year. This growth tells a story that runs counter to the narrative dominating mainstream financial media. The hardware running Bitcoin’s proof-of-work consensus mechanism has never been more powerful or more distributed.
Hashrate and Difficulty
Bitcoin’s mining difficulty, which adjusts approximately every two weeks to maintain a 10-minute block time, has been climbing steadily throughout 2017. The most recent adjustment pushed difficulty above 888 billion, reflecting the enormous computational power now dedicated to securing the network. Each difficulty increase means miners need more powerful hardware to earn the same rewards.
Antminer S9 units from Bitmain remain the workhorse of the industry, delivering 13.5 TH/s at roughly 1,300 watts of power consumption. These machines, priced at around $1,500 to $2,000 depending on the batch, have become the standard for both large-scale operations and serious hobbyist miners. Older generation hardware like the Antminer S7 has been largely pushed out of profitability at current electricity rates.
Profitability Metrics
With Bitcoin trading around $3,580 as of September 17, mining profitability has compressed significantly compared to the $5,000 peak earlier in the month. At current prices and difficulty levels, an Antminer S9 generates approximately $8 to $10 per day in revenue after electricity costs, assuming an average rate of $0.10 per kilowatt-hour. That is down from roughly $14 per day when Bitcoin was at its peak.
Despite the margin squeeze, mining remains firmly profitable for operators with access to cheap electricity. In regions like Sichuan, China, where abundant hydropower keeps electricity costs below $0.04 per kWh, miners are still generating healthy returns. Operations in Iceland, Georgia, and parts of Canada are similarly insulated by low energy costs and cool climates that reduce cooling overhead.
Environmental Impact
The Bitcoin network’s total power consumption has drawn increasing scrutiny as it scales. Estimates place current consumption between 20 and 30 terawatt-hours annually, roughly comparable to the entire energy usage of a small country like Nicaragua. Critics argue this energy expenditure is wasteful, while proponents counter that the cost of securing a global, trustless financial network is a worthwhile trade-off.
The concentration of mining in China, where an estimated 60% to 70% of all Bitcoin mining takes place, has raised concerns about both centralization and environmental impact. Much of this mining occurs in regions with surplus hydroelectric power, which miners argue makes their operations relatively green. However, the coal-powered mining operations in China’s northern provinces tell a different story.
Strategic Outlook
The China exchange ban that sent shockwaves through the market in mid-September has complicated the mining landscape but has not crippled it. While Chinese authorities have moved to shut down cryptocurrency exchanges, they have not yet directly targeted mining operations. This distinction is crucial. Miners can still operate legally, even if converting their Bitcoin rewards to yuan has become more cumbersome.
Forward-looking miners are already diversifying their geographic footprint. Operations are expanding into North America, particularly Quebec and Washington state, where cheap hydroelectric power and favorable regulatory environments create an attractive alternative to China. Iceland’s geothermal and hydroelectric resources have also drawn significant mining investment.
For miners willing to weather the current price volatility, the fundamentals remain compelling. The block reward of 12.5 BTC, combined with transaction fees, continues to incentivize network security. With the next halving still more than two years away, miners have a window of opportunity to accumulate Bitcoin at prices many analysts believe are far below their long-term potential.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency mining involves significant risk and upfront capital investment. Always conduct your own research before making investment decisions.
6.5 EH/s total hashrate in 2017. that is adorable compared to what we are running now
difficulty at 888 billion feels like a typo when you look at current numbers lol
888 billion difficulty seems cute now but at the time it was a milestone. BTC mining has scaled beyond anything 2017 miners could imagine
those early antminer s9 farms in sichuan were running on hydro surplus. cheap power was the only reason china dominated mining back then
6.5 EH/s was considered massive back then. current hashrate is what, 800+ exahashes? 100x growth in 7 years is insane
the hardware efficiency curve is what really changed. s9 miners drawing 1500w per th vs current rigs doing 15w per th. 100x hashrate but 10x more efficient per unit
the article mentions china trying to strangle exchange infrastructure but the mining hashrate kept climbing anyway. tells you everything about how effective bans actually are