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Cryptocurrency News Articles
Bitcoin Mining Hashrate Has Observed A Sharp Rise Recently
Oct 23, 2024 at 11:00 pm
On-chain data shows the 7-day average Bitcoin mining hashrate has just witnessed a fresh surge to set a new all-time high (ATH).
Fresh 7-day average data from Blockchain.com shows the Bitcoin mining hashrate has just observed a new all-time high (ATH). This metric showcases the total computing power connected to the BTC blockchain by miners.
Bitcoin Mining Hashrate Has Seen Growth Recently
The “mining hashrate” is a metric that keeps track of the total amount of computing power that the Bitcoin miners have connected to the blockchain. The BTC network runs on a proof-of-work (PoW) consensus system, where these miners use this computing power to solve mathematical problems.
However, this entire power pool doesn’t work in tandem. Instead, these miners use their individual mining farms to compete against each other to be the first to add the next block to the chain.
This is unlike other networks where the miners collectively work towards the same goal. This design choice was made so that Bitcoin can’t be centralized on a group of entities, which would go against the goal of the network being “decentralized.”
But if there is no collective BTC power, then what’s the significance of the total hashrate? It’s simply a reflection of the sentiment among the miners as a whole.
When the value of this metric goes up, it means the miners are finding the BTC blockchain to be an attractive venture. On the other hand, it registering a decline suggests some of these chain validators are no longer finding the network profitable, which is why they have decided to disconnect their machines.
Now, here is a chart that shows the trend in the 7-day average Bitcoin mining hashrate over the past year:
This 7-day average Bitcoin mining hashrate has seen rapid growth over the last few days and has now crossed the ATH that was set earlier in the month. The latest spike in the metric can be attributed to the bullish price action that the cryptocurrency has enjoyed recently.
Miners make the primary part of their income through the block subsidy, which is a fixed BTC reward that they receive for adding blocks to the network. This block subsidy is given out at a more or less constant rate of time, so the only real variable related to miner revenue is the USD value of BTC.
The growth in the hashrate earlier in the month had come right after a rally in the price. The miners were expecting the run to continue, but once it became clear that wasn’t happening, they pulled back on their upgrades.
A similar pattern was also seen last month. It now remains to be seen if the latest increase in the Bitcoin mining hashrate would have the same fate, or if this price rally is one that would make expansion worth it for the miners.
BTC Price
The Bitcoin price rally has seen a minor setback during the last couple of days as the asset has retraced to the $67,100 mark.
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