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Bitcoin hashrate climbed to 58.109.199 TH / s on May 2nd. This was the highest in six months that bitcoin hashrate has been.
In addition, the transmission rate of the network was higher only on three other occasions. In the blockchain.com chart below, the bitcoin hashrate has been higher than in August, September and October 2018.
Bitchoin hashrate continued to increase during the bear market from 2018 until November 2018. The ensuing decline in hashrate was short-lived, by mid-December 2018 marking the beginning of a another sustained increase. On May 2nd, the hashrate climbed to its highest level in 6 months.
What is Hashrate?
Due to the absence of a centralized third party on the bitcoin network, miners are required to devote computing power to transaction validation. Bitcoin miners around the world use their mining equipment to participate in the validation process. The miners compete for blocks of transactions to add to the blockchain. Therefore, the hashrate bitcoin simply refers to the measurement of the total computing power used to keep the network operational.
The hashrate increases as the computing power of the extraction process increases. Conversely, the hashrate decreases as more farm equipment is disabled and the operating power used also decreases.
Consequences of the rise of hash on the Bitcoin network
A growing hashrate suggests that miners add more exploitation material and use more power to exploit in order to get more rewards in blocks (rewards earned for finding a block) in bitcoin ( BTC). Today, bitcoin mining is a capital intensive business with high electricity costs. It is also badumed that miners participate in the mining of Bitcoin for profit.
It is important to note that the reward for finding a block is fixed (currently 12.5 BTC). Since the bulk rewards received by the miners are in BTC, the mining will be profitable if the value of the rewards (bitcoins) is higher than its costs.
Therefore, the addition of mining power on the Bitcoin network can be interpreted as a miners' confidence in the likelihood of an increase in the bitcoin price.
The above chart of bitcoin prices from blockchain.com shows a continued uptrend on May 2, the same day that a peak hashrate occurred. In practice, bitcoin hashrate does not react or does not always match the price. However, this seems to have been the case this time.
Read more:
Cryptographic influencers are confident the bottom is in, $ 350 premium on BTC at Bitfinex, Ethereum's Progeum update
Bolt-A-Thon: Affordable Lightning Network Conference and Hackaton
Peter Brandt: Bitcoin will cost $ 50,000
The foregoing should be considered as an opinion and not as an investment advice. As an unbiased media, no one interferes with the editorial content of CryptoInsider.com, writers are free to choose their own direction, Crypto Insider members do not participate in the transactions. based on the content.
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BTC: 1HozPdTTJahPigLXwMShErhubZLobBhFPL
ETH: 0xDf4d2529D777a80717E85Ed2269830ad6265951B
LTC: LMT3LCbCSvActkVo4dgzbHjn1HPrCgKch2
BCH: 17sFsLgZq9jibtqi5Bo5SiUcCD4TG8RQwE
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