In this month, bitcoin has been on everyone’s mind. It has shown a stellar performance in the past and then shocked everyone with six-month low prices. A lot of global factors are named behind bitcoin’s trajectory. Some say it is the response to the feds increasing interest rate whereas some credit it to the looming pandemic.
Hash Rates of Bitcoin
Amongst all this striking news of bitcoin, another piece took up the focus. Some researchers pointed out that the bitcoin blockchain network has actually grown stronger. This conclusion came from a simple observation that the bitcoin hash rates have risen rapidly. Bitcoin hash rates, in layman terms, refer to computing power. It is the power contributed to the network at a point in time. This is a technical and logistical way of assessing things. The Chief Strategy officer of Bit Digital, Mr. Tabar noted that the hash rates are quite high – and rising. This is a good sign for the bitcoin network.
Role of Geopolitics
The hash rate is highly dependent on geopolitical events. The turmoil in Kazakhstan, or the impending war between Ukraine and Russia – everything affects the computing power. The hash rates were dipping in the global market when China backed out from the Blockchain network. The rates were plunged. But soon afterward, the rates recovered. Now, North America has emerged as the new leader in blockchain mining technology. The boosted infrastructure and power support to miners and bitcoin traders in North American countries are behind this shift.