Bitcoin’s seven-day average hash rate has reached a new all-time high of 130 exahash per second (EH/s) – a feat that has positively influence the asset’s price, while adding to the fundamental strength of the Bitcoin network.
August 17, 2020 | AtoZ Markets – According to the latest data from Glassnode, the previous peak of about 127 EH/s was recorded on July 28. The Bitcoin (BTC) hash rate dropped sharply after the last halving on May 11. It fell to about 90 EH/s, as miners with old, inefficient mining rigs closed shop.
However, the decline was quickly reversed as miners re-entered the network. Bitcoin’s scheduled supply cut reduced miner bonuses by 50% to 6.25 BTC per block. Overall, the processing power of Bitcoin has grown by more than 77% since August 10, 2019.
What does Bitcoin’s increasing hash rate indicate?
Put simply, hash rate is the way we measure how much computing power everyone around the world is contributing toward mining Bitcoin. Increasing hash power suggests miners are optimistic about making profits.
This might as well influence the price of bitcoin higher, given the strong correlation between the two. But the relationship is not exactly as linear, because it is difficult to gauge future price changes based on hash rate alone, so things can turn out differently.
The good thing is that when miners commit more computing power to process bitcoin transactions, that helps secure the network against 51% attacks – a situation that could allow rogue miners to hijack the system and double-spend some coins.
Bitcoin spikes above 12k
After a few weeks of consolidation, the price of Bitcoin finally broke the resistance zone of $12,000. At the time of writing, each BTC is trading at $12,363, up 1.1% over the last 24 hours. However, it’s uncertain whether the price will continue moving upwards to $15,000 from here. Some pundits expect the price to even hit $28,000 by year-end.
What do you think about Bitcoin’s rising hash rate? Let us know in the comments section below.