BTC’s hashrate is experiencing an unprecedented rise. Late last week, it rose from a level of 188.40 EH/s to 248.11 EH/s. This was a record high. What was remarkable about the rise was that it all happened within a day.
There was a brief dip immediately after the record high. But then it finally settled at 209.63 EH/s. This level cements BTC’s place as the leading blockchain network in the world.
Rise in Hashrate – Implications
Hashrate is a term used by the blockchains that use the PoW consensus algorithm. The term is used to measure the total overall computing power deployed to handle transactions by the miners. The term miners itself is used to refer to a network of computers that are used to handle transactions and add blocks to the blockchain.
A higher hashrate signifies a more secure network. This because a higher hashrate requires more computing power to be mobilized to break into the network to commit fraud.
The rising hashrate is a bullish signal to the market. This signals that miners are investing more in growing the BTC infrastructure. Another bullish signal is the rising difficulty in mining BTC. Analysts believe that the mining difficulty will rise further by at least 3.24%.
There has been increased volatility on the BTC network following China’s ban on crypto mining. As a consequence of the ban, the hashrate in China fell to as low as 58 EH/s. This does put a question mark on the future of crypto in China.
However, now the mining activity has shifted to Russia, Kazakhstan and the USA. This renewed mining activity has caused the hashrate to rise again.
The increase in hash rate is encouraging given the global macroeconomic conditions and ongoing tensions in Ukraine,