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Bitcoin’s seven-day average hashrate reached a new all-time high of 130 exahash per second (EH / s), a feat that could positively affect the price of the asset, while adding the fundamental strength of the Bitcoin network.
According to the latest data from Bitcoin.com charts, the previous peak of around 127 EH / s was recorded on July 28th. Bitcoin’s (BTC) hashrate dropped sharply after the last halving on May 11, dropping to around 90 EH / s as miners with old and inefficient mining rigs shut down.
However, the decline was quickly reversed as the miners re-entered the network. The scheduled supply of Bitcoin reduced the miners’ bonuses by 50% to 6.25 BTC per block. Overall, Bitcoin’s processing power has grown by over 77% since August 10, 2019.
Hashrate is a measure of the power of computers connected to the Bitcoin blockchain, which determines their ability to produce new coins. The increase in hash power suggests that miners are optimistic about making profits.
This could also affect the higher bitcoin price given the strong correlation between the two. But the relationship isn’t exactly that linear, because it’s hard to gauge future price changes based solely on the hashrate, so things can be different.
The good thing is that when miners commit more computing power to process bitcoin transactions, it helps protect the network from attacks by 51%, a situation that could allow dishonest miners to hijack the system and spend a few coins twice.
At the time of writing, each BTC is trading for $ 11,888, up 1.1% in the past 24 hours, according to data from markets.Bitcoin.com.
The major cryptocurrency struggled to break through the $ 12,000 resistance, remaining limited in the $ 11,200 to $ 11,800 range for a couple of weeks. Some experts expect the price to hit $ 28,000 by the end of the year.
What do you think about the rise in Bitcoin’s hashrate? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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