Bitcoin’s hash rate, which is the amount of computing power granted to the blockchain through mining, has reached another record peak. According to Blockchain.com, the metric reached an all-time high of 267 exahhashes per second (EH/s) on November 1 after a nearly 60% increase since the start of the year.

Commenting on the new peak, Charles Edwards, founder of the Capriol Fund, has speculated that government institutions and highly efficient oil companies are entering the large-scale mining game.

He added that this was bullish and not a sign of a miner giving up. However, in the short term, it can be considered bearish as miners sell coins to make ends meet and stay in business.

This scenario could lead to a stagnation or drop in the hash rate that has not yet been seen, adding to the hypothesis that rigs are being deployed by other entities.

“The big oil companies will undoubtedly become major players,” Edwards said.

It looks like the big oil impact is already happening.

Earlier this year, it was reported that ExxonMobil is working with Denver-based Crusoe Energy Systems to mine bitcoin in North Dakota. In June, it was reported that the oil company of Russian natural gas giant Gazprom would supply power to mining company BitRiver.

There has been increasing use of gas glow energy, a byproduct of the oil industry being wasted, to power bitcoin mining.

Earlier this month, Argentine state-owned energy company YPF stated that it would convert residual gas burning energy into crypto-mining energy.

These are just a few examples of the significant impact oil has had on bitcoin mining, and it is likely to increase in the future. In 2020, Cointelegraph reported that oil companies could dominate bitcoin mining by 2025.

Related: Stranded No More? Bitcoin Miners Can Help Solve Big Oil’s Gas Problem

Companies that rely on bitcoin mining as their sole source of business and revenue are struggling right now as every block becomes more competitive, energy prices skyrocket and hashrate or profitability plummets.

Just this week, mining giant Argo Blockchain announced a restructuring of its business strategy and details of the sale of its mining hardware. Last week, bitcoin miner Core Scientific filed forms with the US Securities and Exchange Commission (SEC) to warn of possible bankruptcy proceedings.

Certainly, the low price of bitcoin, which is down 70% from its all-time high, is not making things any easier for bitcoin miners.

Source: CoinTelegraph

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