After experiencing a spike over the past weekend (May 27-28, 2023), the bitcoin hash rate is trending upward, which may see it re-test its all-time high near 400 TH/s in a single day. Keeps on track for.
Hash rate determines the amount of computing power within the Proof-of-Work (PoW) network. Furthermore, it serves as an indicator to measure the general health and security of a network.
A higher hash rate reflects an increased effort to solve the target hash and win a block. This indicates that more miners are participating in the network or that more powerful mining equipment is coming online.
bitcoin hash rate
The chart above shows the continued upward trajectory of the bitcoin hash rate. Although there was a temporary drop around May 2021 due to the China PoW mining ban, the recovery from late June 2021 saw a notable acceleration of the overall upward trend.
In March, members of the bitcoin community commented on the unprecedented increase in hash rate – offering their own theories to explain the matter.
Seb Gouspilou, CEO of mining firm BigBlock DC Bitcoin, said this was due to an influx of miners upgrading to older equipment. However, River Financial analyst Sam Wouters attributed the jump in hash rate to positive BTC price action, which saw the dominant cryptocurrency move from $22,000 to $28,300.
In March, the hash rate reached a new all-time high of 398 TH/s daily reads. However, after a brief decline, it surpassed this level on 11 May when it reached 400 TH/s. Three weeks later, the hash rate is shaping up to test this level again, with a 14-day moving average of 396 TH/s and a current single-day reading of 368 TH/s.
There is debate as to whether the bitcoin price follows the hash rate or if the opposite is true.
Will Clemente, co-founder of Reflexivity Research, previously indicated that during the 2019 bear market, the hash rate did not reach its all-time high until bitcoin tripled from its low. This time, the hash rate has doubled from the May 2021 low, but the BTC price is only up 75% from its low.
Similarly, Max Keizer, host of the Orange Pill podcast, said “hash rate is more important to follow than price,” – adding that the price is “mathematically guaranteed”, with increasing hash rate. There is high potential to grow.
difficulty trend analysis, cryptoslate Researcher James Van Straten said that a rising hash rate would make the adjustment more likely. However, since 2020, the summer term is usually characterized by less difficulty adjustment – which has not happened this year.
Mining difficulty refers to an algorithmic function that controls the time it takes to solve a block. For example, increasing hash rate will reduce the time to solve the target hash, but block times should remain around 10 minutes, making it difficult to adjust higher.
Posted: Bitcoin, Analysis, CryptoSlate Featured Author Samuel Wan Analyst
Samuel Wan, a finance professional turned full-time crypto content creator, values personal autonomy and personal freedom in his pursuits.
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Also known as “Akeeba”, Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to drive massive positive change.
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