The Hash rate of Bitcoin is experiencing continual and steady growth and is breaking new records. While earnings for miners have fluctuated over the years and have declined sharply, especially this year due to the sharp price collapse, the increase in hash rate of bitcoin network is a constant and a positive signal.
Hash rate of Bitcoin(BTC) has now hit 52 trillion per second (52,000,000,000,000,000,000) for the first time on 4 August, as Blockchain confirms. Since the beginning of the year, the hash rate has tripled.
In the last three months alone, there has been an increase of 60 percent. Most recently, we reported a new record of just over 40 trillion in mid-June.
Why, and to what extent, the rise of new people or companies newly entering the miner business, or more efficient mining rigs of the major miners, can only be speculated on, as no statistics are collected.
What Does the Rising Hash Rate Mean for Bitcoin?
The rising hash rate clearly shows that at least the mining industry is still booming and has positive expectations of the Bitcoin price.
The hash rate refers to the computational power of the Bitcoin network to solve the mathematical operations required for safety reasons before writing a block to the blockchain. The hash rate reflects the number of attempts a unit can make when resolving the arithmetic operation.
Since mining is known to be very costly and has a high consumption of electricity, miners must always keep an eye on the economy. From a certain BTC price, the mines can become uneconomic.
Hashrate and level of difficulty are the most important factors besides the price. As the rate of ashtray increases, the level of difficulty increases and this, in turn, would result in miners earning a smaller amount of BTC and part of the transaction fees.
For some miners, however, this also means that those who do not upgrade their equipment or find cheaper electricity will face a sharp decline in profitability.
Due to increased competition, the Bitcoin network will also improve the security of the entire network. Despite the decline in the Bitcoin price, the rate of hash continues to increase, according to many analysts, at least miners continue to be bullish and expect the price to rise in the near future.
Former Wall Street dealer and journalist Max Keizer wrote in June:
The price follows the Hashrate
Despite the correction last week, confidence in Bitcoin’s long-term future remains strong. The ICE’s announcement to build and launch a regulated platform for digital assets by November strengthens many people’s belief that Bitcoin has bottomed out.
The Bitcoin share price is moving sideways, recording a minimal drop of 0.20 percent over the last 24 hours at the time of writing (9:30 am) to a price of $ 6099.21. Bitcoin dominance is 47.66 percent and its market capitalization are just under 121.543 billion dollars.