In June, the Bitcoin hashrate took a plunge to barely 84(EH/s). This resulted from Chinese regulators clamping down on the mining activities of the digital asset in its Asian bloc.
Now, the hashrate for Bitcoin has seen incredible growth, of 108%. The Bitcoin network recorded 175 EH/s yesterday.
Hashrate And Price Are Like White On Rice
The mining hash rate from the developer’s corner is considered a crucial security metric. Also, it is essential to the general safety of the Bitcoin network because an increase in hashing power, which is computing power, enhances the security of the blockchain. Another reason is that hashing increases the overall resistance of the network. Thereby preventing organized hacking or brute attack.
Nobody knows the hashing power of Bitcoin. Its accuracy is shrouded in speculation and, of course, the assumption in numbers. One approach is to evaluate the hashing capacity of Bitcoin from the number of blocks mined. This also includes the difficulty of the current block. Hashing power is estimated within a time frame of 24 hours.
If we were to go by Ycharts analysis, Bitcoin Network Hashrate stands at 186.53M, rising more than 100% in the last twenty-four hours. And saw an increase of 35.22% during the previous 365 days. The current period translates to a 3% downtrend of the earlier bull cycle at 180 EH/s recorded in May.
Speculators and investors think that the hash rate directly relates to the price patterns of a digital asset, especially Bitcoin. Not only has the trend smacked Bitcoin as the market topper due to poor runs and nasty dips, but it has also added to the recent pessimism surrounding the digital asset.
But it was not always like this. Back on August 21, a “golden” cross happened where the short-term value of a digital asset crossed its long-term average value. This is a massive indicator that trading volumes have significantly increased. With the current hash rate implosion, the year may end with positive price action for Bitcoin, which is excellent for the crypto market.
Global Hashrate Is Fictitious
While it is difficult to determine the real global hashrate for ATH due to problems with historical analysis and methods used to benchmark current performance, these different approaches to evaluating ATH are still applicable in several ways. For instance, the Network’s ATH hashrate recorded in May was 197 EH/s, according to BitInfoCharts. These numbers then dropped to 68 EH/s the following month. Yesterday, the hashrate, according to YCharts, was 191 EH/s.
The clampdown on Chinese miners was a big deal. The reason is that the Asian miners contribute to two-third of the global hash rate. During the ban, mining activities from the United States intensified, dominating the global hashrate by almost 42%. The Bitcoin Electricity Consumption index released the mining data at the University of Cambridge.