Bitcoin Hash Rate Sets Record High Boosting Network Security
The Bitcoin (BTC) hash rate — the total computing power of the bitcoin network — reached new all-time highs this week, data from monitoring resource Blockchain.com confirmed on June 19. Bitcoin Hash Rate Sets Record High Boosting Network Security
As the Bitcoin price set a new annual record above $9,000, hash rate, which can be taken as a measure of how much interest there is in mining bitcoin, shot higher than ever before.
For Wednesday this week, the most recent day for which data is available, bitcoin’s hash rate had reached 65.19 trillion hashes per second (Th/s).
The activity did not go unnoticed, with hash rate constantly gaining every day throughout this week.
“Hashrate (more often than not) leads price,” Keiser Report host and major Bitcoin bull, Max Keiser, wrote on Twitter in related comments Thursday.
“This is something not even (bitcoin’s) most ardent supporters understand.
It’s the heart of the incentive scheme. It’s Satoshi’s ability to hack humans to create Gold 2.0.”
The number comfortably beats the previous record of 60 Th/s set in late September 2018, and continues the metric’s upward trend.
As Cointelegraph reported, the period after last September proved to be a retrograde step for the bitcoin network, with hash rate falling for the first time ever until the new year.
Various other metrics – and, of course, price – also saw suppression, before network activity picked up in Q1 2019. Thereafter, beginning April 1, the bitcoin price followed, sparking an almost unbroken three-month bull market, which continues. Bitcoin Hash Rate Climbs, Bitcoin Hash Rate Climbs, Bitcoin Hash Rate Climbs
Bitcoin Hash Rate Hits New All-Time-High
The previous record was broken in the second half of June, when bitcoin’s hashrate reached 65.19 TH/s and growth has steadily continued since then.
Hash rate is the number of calculations that a given hardware or network can perform every second. It is a very important parameter for miners, as a higher hash rate will increase their chances of solving the mathematical problem, sealing off the block and collecting their reward. A higher network hashrate also increases the amount of resources needed for performing a 51% attack, making the network safer.
Increases in the network’s hash rate also often mean that its energy consumption increases. Still, cryptocurrency investment products and research firm CoinShares recently estimated that 74.1% of bitcoin mining is powered by renewable energy.
As Cointelegraph previously reported, the period after September 2018 — during the so-called “crypto winter” — proved to be a retrograde step for the bitcoin network. At the time, the network’s hashrate decreased for the first time ever.
In June news broke that bitcoin’s mining difficulty has reached an all-time high, demonstrating the increasing competition for block rewards between miners. Bitcoin Hash Rate Sets,Bitcoin Hash Rate Sets,Bitcoin Hash Rate Sets
Bitcoin Network Hash Rate Hits 80 Quintillion For The First Time
Bitcoin (BTC) has passed another network performance milestone this week as the largest cryptocurrency’s hash rate hit a new record high.
Bitcoin Secured By 80 Quintillion Hashes Per Second
Data from monitoring resource Bitinfocharts confirmed Bitcoin’s hash rate exceeded 80 quintillion SHA256 hashes per second Aug. 8, the first time such a level has been reached.
Hash rate refers to the amount of computing power used to validate Bitcoin transactions. The more power, the costlier it becomes for malicious actors to attack the network.
As Cointelegraph reported, hash rate has set multiple new all-time highs throughout recent months, reversing a downward trend which characterized the second half of the 2018 Bitcoin bear market.
The metric is one of many to set personal bests this year; difficulty and volume, among others, have also done so.
Greater Security Boosts Investor Confidence
Network strength in turn contributes to the overall bullish sentiment among Bitcoin proponents, who note that during the cryptocurrency’s all-time price high in December 2017, the same metrics were markedly lower.
As such, the argue, Bitcoin is better equipped for growth now than then, or at any point in its history.
When that growth will kick in remains uncertain, with opinions nonetheless coalescing around next May’s block size reward halving. Prior to that, miners will ensure that markets keep above the lows seen in the past year, with one analyst putting the floor at around $6,500.
Bitcoin Is Using Less Energy Despite Record Hash Rate, New Data Shows
Bitcoin (BTC) energy consumption is becoming rapidly more efficient, new data shows as hash rate continues to hit record highs.
Record Hash Rate With Less Power
Data from aggregator Statista accessed on Sept. 5 showed that despite more computing power being dedicated to Bitcoin mining, less electricity is required to fuel it.
According to one chart, energy consumption as of July was 69.79 terawatt hours per year. In July 2018, the figure was 71.12 terawatts, while hash rate was almost 60% lower than at present.
As Cointelegraph reported, hash rate measures the overall computing power involved in Bitcoin transaction processing. The metric passed 80 quintillion hashes per second in August, and currently lies at just under 90 quintillion. In July 2018, the number was around 40 quintillion.
Bitcoin Mining Gets Eco-Friendly
The data thus fits into the overall trend for miners to become more ecologically aware. As Bitcoin prices recovered this year, multiple operators announced attempts to improve efficiency.
A study in June found that three-quarters of Bitcoin mining activity is powered by renewable energy sources.
Hardware manufacturers have further sought to develop new devices with greater capabilities and lower energy demands, such as Bitmain’s 7nm Antminer, which debuted last November.
Electricity nonetheless remains a popular topic among third parties, some of which allege the industry’s consumption makes it a morally questionable activity.
Bitcoin Hash Rate To Hit A Milestone 100 Quintillion For The First Time
Bitcoin (BTC) is aiming for a new network record as its hash rate is just inches away from hitting three figures.
Bitcoin Hash Rate Nearing 100 Quintillion
Data from statistics and wallet provider Blockchain published on Sept. 8 shows that as of that date, Bitcoin’s hash rate has topped 94 quintillion hashes per second.
A record in itself, the number is now set to reach 100 quintillion for the first time in Bitcoin’s history, commentators suggest.
As Cointelegraph has explained, hash rate refers to the overall computing power involved in processing Bitcoin transactions. The more power, the more secure and profitable the Bitcoin network is.
Hash rate spent six months in recession during the second half of 2018, before staging a dramatic comeback in January. Three months later, Bitcoin price followed suit, rising from $3,500 to local highs of $13,800.
Keiser: Bitcoin Gains Will Come At Fiat’s Expense
According to RT host Max Keiser, price traditionally follows hash rate in bull runs. Now, he says, it is fiat currency which will start feeling the strain due to Bitcoin’s success.
“#Bitcoin hash set to break 100 Q. This will start to become a problem for fiat as data centers dedicated to maintaining fiat systems are pulled into the BTC black hole of true value,” he wrote on Twitter on Sunday.
The pace of change in Bitcoin likewise did not go unnoticed by Lightning Torch relay organizer Hodlonaut, who on Twitter noted the metric measured just 6 quintillion in September 2017.
“Today, hashrate increases with that same amount every 2-3 weeks,” he added.
BTC/USD meanwhile has yet to capitalize on network strength again. At press time, the pair traded sideways just below $10,200, having lost almost 4% over the past 24 hours.
Bitcoin’s Record Hash Rate May Hint At Price Gains To Come
With the hash rate or miner’s confidence hitting record highs, bitcoin’s three-day narrowing price range looks set to end with a bullish breakout.
A range breakout would open the doors to $10,956 – the bearish lower high created on Aug. 20.
A break below Friday’s low of $10,154 would confirm a range breakdown and could yield a sell-off to $9,855 (Sept. 11 low).
Bitcoin’s latest bout of consolidation may end up with bullish breakout, as a key metric of miner confidence has hit all-time highs.
The top cryptocurrency by market value has clocked lower daily highs and higher daily lows over the last three days and is currently trading at $10,300 on Bitstamp, little changed on a 24-hour basis.
The cryptocurrency has charted the narrowing price range amid a surge in non-price metrics including a rise in the network’s hash rate – a measure of the computing power dedicated to mining bitcoin.
Notably, the two-week average hash rate reached a record high of 85 exahashes per second (EH/s) around 19:00 UTC on Friday. Further, mining difficulty – a measure of how hard it is to create a block of transactions – also jumped to a new all-time high of nearly 12 trillion.
Hash rate can be considered a barometer of miners’ confidence in the bitcoin price rally.
After all, they are more likely to dedicate more resources to the computer intensive process that secures the network and processes transactions if they are bullish on price. Miners would likely scale back operations if a price slide is expected.
Hence, many observers, including the likes of Changpeng Zhao, CEO of Binance, and former Wall Street trader and journalist Max Keiser believe prices follow hash rate.
Zhao tweeted on Friday that, a rising hash rate means “more miners are investing in BTC,” while few other observers stated that sellers should think twice before betting against the most secure blockchain (the higher the hash rate of a cryptocurrency network, the more expensive it is to attack).
It is worth noting, though, that the market is divided on the relationship between price and hash rate.
Some observers believe the hash rate follows price and the metric’s stellar performance represents overtly exuberant miners.
That said, the price is likely to follow the hash rate this time, as over-exuberance is typically observed at market tops or near record highs. As of now, BTC is down almost $10,000 from the record high of $20,000 reached in December 2017.
Further, with the next reward halving (supply cut) due in less than a year, market sentiment is quite bullish. The sustained uptick in miners’ confidence is more likely to draw fresh bids, possibly leading to a positive feedback loop.
Bitcoin has charted (above left) back-to-back inside bar candlestick pattern on the daily chart over the last three days. The first inside bar appeared on Friday as that day’s high and low fell within Thursday’s trading range. The second and the third inside bar candle was created on Saturday and Sunday, respectively.
Inside bars indicate consolidation and lack of volatility, often ending with an explosive move on either side. A break below the first inside bar’s (Friday) low of $10,154 would imply range breakdown and could yield a stronger sell-off to levels below $9,855 (Sept. 11 low).
A break above Friday’s high of $10,458 would imply range breakout and open the doors to $10,956 (July 20 high).
The falling wedge breakout confirmed on the 4-hour chart (above right) last week is still valid. So, the probability of range breakout is high.
Bitcoin Hash Rate Hits 102 Quintillion In Historic Network Milestone
Bitcoin’s (BTC) network hash rate has passed a record 102 quintillion hashes for the first time in history in a historic milestone for the cryptocurrency.
Bitcoin Adds Another Zero To Hash Rate
As data from monitoring resource Blockchain confirmed on Sept. 18, hash rate, ultimately a function of how secure the Bitcoin network is, has reached a high of 102.8 quintillion hashes.
The achievement follows a string of records for the metric this year, Cointelegraph reporting on various stages of its expansion over the past few months.
Hash rate refers to the amount of computing power involved in processing Bitcoin transactions. The higher the number of hashes, the more implied competition there is among miners to obtain the block reward.
Since December 2018, the hash rate has progressed from its recent low of 31 quintillion hashes per second, equating to the progress of 230%.
Bitcoin Proponents Eye Price Implications
Current growth has excited commentators, despite coming in tandem with a moderate decline in Bitcoin price.
As many noted, new upward action for hash rate tends may hint at future price growth. Hash rate began growing in January after several months of decline, with price then following in April.
Commenting on the current rate of growth, Lightning Torch organizer Hodlonaut said the figures spoke to underlying confidence among miners.
“Last readjustment period (2016 blocks, or around 2 weeks) increased 10.38%. We are about half way through the current readjustment period, and on track for another 11.85% increase,” he forecast.
Others have already given more bullish predictions. Max Keiser, a firm believer in Bitcoin’s prowess over altcoins, has frequently doubled down on his depiction of giant surges in both hash rate and price in the near future.
Bitcoin Miners Get Bullish As Difficulty Set For 60% Quarterly Growth
Bitcoin (BTC) will see its mining difficulty grow by 60% in the third quarter of 2019, according to new data.
Bitcoin Metrics Show Big Competition In Play
Uploading historical and future projections to Twitter on Sept. 19, well-known analyst Kevin Rooke said difficulty had already expanded at an average of 42% each quarter since 2016.
With the exception of the fourth quarter of 2018, the floor of the Bitcoin bear market, growth has been positive consistently ever since. This year’s increases have been almost vertical compared with the previous period.
“Difficulty is projected to grow 60% this quarter, and it was already at an all-time high when Q2 ended,” he wrote in accompanying comments.
Difficulty refers to the amount of effort required to solve the complex equations which verify blocks of Bitcoin transactions and unlock block rewards.
The more competition there is on the Bitcoin network, the more difficulty increases; a lack of interest conversely sparks a decrease in difficulty to incentivize participation.
Bitcoin Metrics Stronger Than Ever Before
As Cointelegraph reported, Bitcoin mining difficulty is just one of the fundamental technical indicators to beat expectations this year.
Just this week, it was Bitcoin’s hash rate which hit all-time highs yet again, passing 102 quintillion hashes per second for the first time ever.
According to proponents, such progress precedes a similar jump in Bitcoin prices, this nonetheless evading markets so far in the third quarter.
“Someone is confident,” Lightning Torch organizer Hodlonaut summarized on Thursday.
Bitcoin Network Hash Rate Mysteriously Flash Crashes by 40%
Data from Coin.dance — corroborated by other sources [insert links] — indicates that the network’s hash rate plummeted yesterday from over 98,000,000 TH/S to 57,700,000 TH/s.
Mystery Flash Crash Remains Unexplained
The flash drop remains unexplained as of press time and is all the more striking given the Bitcoin network’s record-breaking string of new all-time high hash rates throughout summer.
Just five days ago, Cointelegraph had reported that Bitcoin’s hash rate had passed a record 102 quintillion hashes in a historic milestone.
As previously noted, the hash rate of a cryptocurrency — sometimes referred to as hashing or computing power — is a parameter that gives the measure of the number of calculations that a given network can perform each second.
A higher hash rate means greater competition among miners to validate new blocks; it also increases the number of resources needed for performing a 51% attack, making the network more secure.
By press time, Bitcoin’s hash rate has somewhat recovered back to almost 88,300,000 TH/s — yet remains well below its earlier records.
Throughout summer, cryptocurrency analysts had argued that the network’s record-breaking streak of all-time hash rate highs was a bullish indicator for the top coin’s price performance.
In A Tweet Posted This August, Bitcoin Investor Max Keiser Had Claimed That:
“Price follows hashrate and hashrate chart continues its 9 yr bull market.”
Back in November 2017, Bitcoin had seen a sudden hash rate downturn of almost 50%, accompanied by slowed transaction processing times, a price dip, and even miners’ short-lived switch over to the forked network, Bitcoin Cash (BCH).
What Crash? Bitcoin Hash Rate Doubles In 24 Hours Despite Price Drop
Bitcoin (BTC) has already dispelled myths its hash rate suffered a 40% drop this week, reaching new all-time highs just days afterwards.
What Hash Crash?
As data from monitoring resource Coin Dance confirms, after the hash rate metric dipped from 104 quintillion hashes per second (h/s) to 57 on Sept. 23, it immediately reversed.
On Sept. 24, it doubled, reaching 114 quintillion h/s, just a touch away from the all-time highs of 121 quintillion h/s seen ten days previously.
As Cointelegraph reported, commentators initially appeared scared when hash rate dropped. Long considered a measure of commitment to the Bitcoin mining process, what appeared to be a sudden exodus of computing power sparked alarm.
That feeling was compounded as BTC/USD itself shed 15% a day later — a common theory among commentators is that price action follows hash rate movements.
Dispelling The Myths On Bitcoin Health
Nonetheless, technical sources subsequently explained that the hash rate charts available online in fact give little idea of computing power involved in Bitcoin.
Hash rate, they explained, is essentially unmeasurable, and the statistics are simply an estimate.
Factors such as slow block times can disproportionately affect results, leading to overly ominous results such as this week’s fake crash, they added.
If the latest statistics are reliable, however, Bitcoin’s hash rate remains on its upward trajectory, around all-time highs. This contrasts with its drop in price: at press time Friday, BTC/USD was down 21% versus seven days ago.
$10M Mining Farm Fire Takes Blame As Bitcoin Hash Rate Wobbles
The Bitcoin (BTC) network experienced fresh turbulence on Sept. 30 while evidence emerged of a fire destroying $10 million worth of mining rigs.
A Video Of Alleged Bitcoin Miner Fire Emerges
According to Marshall Long, one of the first active Bitcoin miners, mining company Innosilicon’s giant data center began burning on Monday. Details remain sparse, but a video appeared showing the machines reportedly continuing to run despite being on fire.
Dovey Wan, a founding partner at crypto asset holding company Primitive Ventures, added that the total worth of equipment involved circled around $10 million.
At press time, Innosilicon had not made any public comments, either officially or on social media.
Hash Rate Struggles After Highs
Commentators on social media were swift to air concerns that the blaze was to blame for a reported drop in Bitcoin’s hash rate.
On the day it occurred, estimates of network computing power involved in processing transactions dropped from 86 quintillion hashes per second (h/s) to 82 quintillion h/s.
As noted previously, however, hash rate estimates provide only a limited view of Bitcoin’s overall health. Last week, what appeared to be a 40% hash rate plunge, later was widely ignored by technical graphs.
As Cointelegraph reported previously, the rainy season in China’s northwestern Sichuan province has spelled disaster for at least one more Bitcoin mining farm on Aug. 20.
Bitcoin’s White Paper Turns 11 As Network Passes Milestones
Happy Birthday, Bitcoin.
Halloween 2019 marks the eleventh anniversary of the release of the white paper for the first fully decentralized, peer-to-peer electronic cash by anonymous creator(s) Satoshi Nakomoto. In the wake of the Great Recession of 2007–2009, a single email for a small collective of cypherpunks proved to be the catalyst for a monetary revolution.
“I’ve been working on a new electronic cash system that’s fully peer-to-peer, with no trusted third party,” Satoshi wrote to open his email, attaching the bitcoin white paper.
Rolling out bitcoin’s code the following January with the mining of the genesis block, bitcoin’s first year was inauspicious at best. Eleven years later, however, most metrics point towards a bright future. The white paper’s birthday month proved to be one of the best yet.
October In Review
Looking at the numbers, the last 10 months have given bitcoin hodlers much to be thankful for; October, even more so.
Bitcoin’s price jumped some 40 percent in 24 hours on Oct. 26, briefly breaking out to $10,000. As ARK Invest analyst Yassine Elmandjra wrote on Twitter, the price movement has only happened three times in bitcoin’s history.
Bitcoin’s hash rate – a good metric for the amount of energy put towards mining bitcoin’s and securing the network – hit an all-time high at over 110 exahashes per second (EH/s) on Oct. 23.
As recent initial public offering filings for mining giants Canaan and Bitmain show, bitcoin mining has gone a long way since the early days of CPU farming, and is now big business.
Bitcoin also just mined its 18 million coin, leaving a mad scramble for the last 3 million. As halvings continue to occur every 210,000 blocks or so, the last coin won’t be minted till 2140.
Bitcoin fees collected reached $1 billion in total earlier this week too, right in time for today’s celebrations.
Bitcoin Mining Difficulty Sees Biggest 2019 Drop As Hash Rate Spikes
Bitcoin (BTC) mining difficulty adjusted downwards more than at any time since its 2018 price low on Nov. 8, data shows.
As noted by entrepreneur and cryptocurrency commentator Alistair Milne on Monday, difficulty fell by around 7% after the network’s latest readjustment.
Difficulty Reveals Bitcoin Network Maneuvering
Mining difficulty refers to the effort required for miners to solve the equations necessary to validate transactions on the Bitcoin network. A higher difficulty implies competition for block rewards is higher, while drops incentivize more participation.
The mechanism functions as a self-stabilizing device for Bitcoin, ensuring network security is sufficient even when price or network activity drops significantly.
From its recent bottom of 5.1 trillion in December 2018, when BTC/USD traded at $3,100, the difficulty has increased incrementally throughout 2019. In late October, the metric reached an all-time high of 13.7 trillion and has now corrected to 12.7 trillion, data from monitoring resource Blockchain shows.
“Seems to confirm the cost of mining (on average) is ~$8000,” Milne summarized.
Hash Rate Retakes 100 Billion Hashes Per Second
At the same time, Bitcoin’s network hash rate saw renewed bullish upside on Monday, having similarly seen a period of contraction in recent weeks.
At press time, hash rate, which is an estimation of how much computing power is dedicated to validating transactions, had passed 100 quintillion hashes per second once again.
The move follows news that Argo Blockchain, a major Bitcoin mining provider, brought 500 new Antminer S17 rigs from mining giant Bitmain online over the past week.
The United Kingdom-based firm now has around 7,000 miners, and by the end of Q1 2020 plans to increase the total to 17,000.
As Cointelegraph reported, mining companies overall remain buoyant about the future profitability of the sector. Canaan Creative, another significant player, is reportedly set to undergo a $400 million initial public offering, or IPO, this month.
At the same time, Bitmain is going ahead with the expansion of a Texas mining farm which officials say could ultimately become the largest in the world.
‘Incredible’ Bitcoin Hash Rate Boom Will Destroy Altcoins: Tone Vays
Bitcoin (BTC) will cement its dominance over the cryptocurrency market next year in a fresh blow to altcoins, a veteran trader has said.
In the latest episode of his Trading Bitcoin YouTube series on Dec. 22, Tone Vays warned that altcoin traders faced even worse conditions as 2020 begins.
Dominance On Way To 98%
“One of my predictions for 2020 is going to be Bitcoin dominance in 2020 reaching 85%,” he stated.
Continuing, Vays explained that Bitcoin further strengthening its market position would echo gains it already secured this year — dominance is currently 69% versus 51% in January. As a percentage against its position in January 2018, Bitcoin dominance is up 87%.
For Him, In The Long Term, The Figure Could Expand To See BTC All But Usurp Altcoins Altogether:
“I think Bitcoin dominance has one more push. The way we went from about 50% to 70% in 2019 — I think we have another 10-15% in Bitcoin to gain on the sh*tcoins as it continues towards 90% and 95% and then 98%.”
Vays: BTC Hash Rate Growth Is “Incredible”
The fundamental factor driving Bitcoin’s success would be the hash rate strength. Since BTC/USD hit its all-time high in December 2017, the hash rate has grown by 800%, something Vays describes as “incredible.”
Hash rate refers to the overall computing power miners choose to devote to validating the Bitcoin blockchain. Despite lower prices, interest and competition among miners continue to expand, also resulting in a more secure Bitcoin network.
“Show me another sh*tcoin that has this kind of hash rate growth,” he argued.
Famously unconvinced about the potential role for alternative cryptocurrencies, Vays went on to predict that Bitcoin’s Liquid sidechain product would ultimately “destroy” the utility of competitors.
Specifically, these are Ethereum, EOS and Cardano, all of which have accompanying altcoins for their platforms in the top twenty cryptocurrencies by market cap.
Vays has not always been so clear cut on Bitcoin’s outlook. Responding to a mainstream media interview covering investor Tim Draper’s $250,000 Bitcoin price prediction, he claimed such bullish forecasts had made him “more bearish.”
By contrast, he told crypto media network BLOCKTV on Sunday, a $50,000 BTC/USD price by 2023 was still reasonable.
Bitcoin Kicks Off 2020 More Secure Than Ever As Hash Rate Hits Record
Bitcoin (BTC) has already hit a new record in 2020 as the cryptocurrency’s network hash rate once again topped previous all-time highs.
Data from multiple monitoring resources including Blockchain and Coin Dance confirmed hash rate was higher than ever on the first day of the new year.
Estimates Point To An All-Time High For BTC Network
A measure of the computing power devoted to validating the Bitcoin blockchain, hash rate spent much of 2019 in a continuous growth cycle. Only for a brief period in Q3 did the upward trend level off.
Strong hash rate suggests Bitcoin is a more appealing proposition for miners — more mining power translates into better network security and robustness against potential attacks.
According to Blockchain, the metric hit 119 quintillion hashes per second (h/s) on Jan. 1.
Markets Await “Price Follows Hash Rate”
The reason for the variation lies in the fact that the hash rate is all but impossible to measure in real terms. Resources can only analyze recent network activity and from that create an estimate of presumed hash rate.
In September, what appeared to be an overnight 40% drop in hash rate was subsequently attributed to the way it is calculated.
The recent records have further come independent of Bitcoin price action. BTC/USD fluctuated between $3,100 and $13,800 last year, but the hash rate trend endured.
Commentators, including Keiser Report host Max Keiser, have also claimed that hash rate highs will ultimately produce new Bitcoin price highs.
At press time, the pair traded at just above $7,100, down around 3% over the three days covering the hash rate record.
Bitcoin has recently set other technical records, which Cointelegraph reported last week.
Bitcoin Mining Power Hits Fresh All-Time High
Bitcoin’s hash rate reached record highs this week amid rising prices and anticipation of the miner reward halving later this year.
Based on a seven-day average, the hash rate has risen sharply from approximately 93 exahashes per second (EH/s) on Dec. 30 to more than 106 EH/s on Jan. 5. The best day overall was Jan. 1 when the hashing power exceeded 119 EH/s, surpassing the previous record of 114 EH/s set back in October.
Bitcoin’s hash rate has increased considerably over 2019, rising from a weekly average of 40 EH/s at the beginning of the year to 80 EH/s by September.
That shift corresponded with the rise in bitcoin’s price from roughly $4,000 to more than $10,000 over the same timeframe. The hash rate first crossed the 100 EH/s milestone on Sept. 26, but it wasn’t until late October that it stayed above 100 EH/s for more than a day.
A plus-100 EH/s rate has become an increasingly frequent sight, with only one day so far this year reporting under the new benchmark.
Hash rate is a measure of the processing power dedicated to a blockchain. A high hash rate means more miners are working on the bitcoin network, suggesting it is increasingly economically viable at both the current bitcoin price and difficulty level. A report published in September predicted bitcoin’s two-week average hash rate would cross 100 EH/s at the end of 2019.
Bitcoin’s difficulty level automatically adjusts to ensure block time stays broadly at around the 10-minute mark, regardless of how many miners are working on the network. It adjusts every two weeks, the last being on Jan. 1 when it increased by 6.75 percent, the largest since September.
Plummeting cryptocurrency prices in 2018 forced many miners to shut up shop, with only the largest able to remain profitable. The industry faced an existential crisis as recently as last April when a government agency in China – home to more than two-thirds of all bitcoin mining operations – called mining “undesirable.”
However, the situation looked brighter for miners last year as the bear market faded. More than half a million new application-specific integrated circuit (ASIC) rigs are estimated to have come online in Q3 2019, following a summer in which the bitcoin price more than doubled.
In recent days, bitcoin prices have taken an upturn, rising nearly 10 percent from lows near $6,850 seen on Friday. The rise may have set the cryptocurrency up for a bullish trend shift, charts suggest, further encouraging miners.
2020 is set to be a crucial year for many miners looking to increase their capacity. Bitcoin’s block reward is expected to halve to 6.25 BTC in the coming months. While Bitmain is expected to make job cuts in anticipation of a drop in revenue, according to Chinese media, other companies are significantly scaling their operations.
U.K.-listed mining firm Argo Blockchain announced Thursday it had acquired more than 3,600 new bitcoin ASICs, more than quadrupling its total mining capacity. The news caused the company’s share price to rise by 6 percent on the London Stock Exchange.
It’s Never Been Harder To Mine Bitcoin As Hash Rate Hits New Highs
The mean hash rate of the Bitcoin (BTC) network has hit new all-time highs to mark the cryptocurrency’s latest technical achievement, fresh data suggests.
Compiled by monitoring resource Glassnode, a new analysis of Bitcoin’s historical hash rate shows that on Jan. 7, the mean value reached 119 quintillion hashes per second — its best ever at the time.
Consensus On BTC Hash Rate Record
Hash rate refers to the amount of computing power miners are using to validate the Bitcoin blockchain. The more power, the more notionally secure the blockchain is. A large hash rate can also be taken as a statement of the attractiveness of mining for participants.
Glassnode’s reading derives from the one-day moving average hash rate calculation. While the hash rate is impossible to measure exactly, the data supports other estimates showing the metric hit new records in recent weeks and months.
As Cointelegraph reported, various statistics resources have confirmed the uptrend, with the highest reading approaching 150 quintillion hashes per second this week.
Progress has been swift. According to Glassnode, the mean hash rate low of 36 quintillion hashes per second — which formed the basis for recent growth — occurred in late April 2019.
Difficulty Set For Another 6% Surge
This year, meanwhile, Bitcoin has already exhibited multiple signs a bullish transformation is once again underway. Alongside hash rate, commentators have highlighted increased trading activity among Bitcoin futures investors.
Mining difficulty, which had previously been in decline, is now increasing. Last week, the metric progressed 6%, while another 6-7% is on the cards at the next adjustment in nine days’ time.
Anticipation has also been building around Bitcoin price action for the coming twelve months, with industry figures going on record to predict new all-time highs for BTC/USD before 2021.