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The hashrate, the total computing power securing Bitcoin’s network at any one time, seems to have sustained a major uptick in the past week. According to data from monitoring resource Blockchain.com, the past seven days saw the Bitcoin hashrate increase by 23 percent to around 58 quintillion hashes per second (58 EH/s), representing the largest weekly jump since a similar surge in January.
The Bitcoin network’s hashrate, which is the total computing power securing the network at any one time, seems to have sustained a major uptick in the past week.
A hash rate increase is good for bitcoin because it means more people are mining bitcoin, which increases its value and makes it easier for people to use. However, an increase in hash rate could also indicate that miners are finding new blocks faster than expected or that hardware has become more efficient at using electricity—which would cause difficulty levels to rise rapidly.
According to data from monitoring resource Blockchain.com, the past seven days saw the Bitcoin hashrate increase by 23 percent to around 58 quintillion hashes per second (58 EH/s), representing the largest weekly jump since a similar surge in January.
The latest spike comes as investors have become increasingly concerned about how much electricity is needed to run Bitcoin mining operations and whether miners will be able to keep up with demand as new money enters into their business model.
It is likely that a wave of miners who were lying dormant for months have returned to mining activities after a price rally that seen BTC/USD appreciate from lows of around $3,200 in December 2018 to as high as $8,300 this week.
Bitcoin mining is profitable again. The price of bitcoin (BTC) is rising, which means that the hashrate of miners who compete to verify transactions on the network will increase as well.
Bitcoin mining difficulty has increased by more than 50% since January this year and it's likely that a wave of miners who were lying dormant for months have returned to mining activities after a price rally that seen BTC/USD appreciate from lows of around $3,200 in December 2018 to as high as $8,300 this week. This may cause a spike in difficulty levels over time due to competition between miners trying different strategies for securing their earnings from processing transactions on the network
The rise of the hashrate is also seen as an indicator of strong confidence among miners that Bitcoin will continue to increase in value over time and remain profitable in the long term.
The current level of mining activity is a reflection of this optimism, which has been fueled by recent announcements from major players in the industry such as Bitmain and Canaan Creative (two companies that have been leading efforts to develop new chips aimed at improving efficiency).
The bitcoin hash rate has increased by 23% or nearly 60 EH/s
The bitcoin hash rate is a measure of the total computing power securing the network. It can be thought of as a measure of how many transactions are being processed by miners.
The bitcoin hash rate has increased by 23% or nearly 60 EH/s from its recent low point in early October 2018, which was still above 30 EH/s at that time.
Conclusion
The Bitcoin hash rate has increased by 23% or nearly 60 EH/s. This is likely due to an influx of miners who were lying dormant for months have returned to mining activities after a price rally that saw BTC/USD appreciate from lows of around $3,200 in December 2018 to as high as $8,300 this week. The rise of the hashrate is also seen as an indicator of strong confidence among miners that Bitcoin will continue to increase in value over time and remain profitable in the long term.
