Bitcoin's price has observed a renewed interest throughout the past several weeks, according to its upswing. The asset's hash rate also has been moving upward, at this time posturing near to all-time high levels.
At time of publishing, data from Blockchain.com shows the hash rate for Bitcoin sitting at about 48,003,251. However, on May 2, the number reached 58K. The last means an increase of nearly 40% since 2019 had started, and about 6% away from the all-time high.
Hash rate is simply “the estimated number of terra hashes per second (trillions of hashes per second) the Bitcoin network is performing,” the website details.
Studying the chart from Blockchain.com, Bitcoin's hash rate topped out at 60,089,527 on September 24, 2018, before going down to 31,998,005 on December 2 of the same year.
A Crypto Potato post from January 2019 detailed hash rate normally correlates with the amount of players mining bitcoin. An increased number of miners typically results in higher hash rate.
“What many in the space have come to observe is that the hash rate is directly correlated with the Bitcoin network difficulty, which increases as more miners enter the network,” the outlet noted. “A declining hash rate also means there is less profitability in mining, which leads to miners shutting down their mines or moving to mine other coins.”
Looking at the current high hash rate levels, one could surely conclude that interest is on the up and up for those in the industry of bitcoin mining.
Correlation Between Bitcoin’s Price and Hash Rate
BTC price in addition, looks to have possibly observed some correlation to the hash rate, and consequently, mining interest.
After the notable drop from the $6,000 zone, it seems as if miners likely began leaving the network, as seen due to the December 2018 low hash rate although this speculation is muddled by the sight of an increased hash rate trend for bitcoin throughout the majority of 2018, while the price fell significantly throughout the year.
In a Bitcoin Uncensored YouTube video several years ago, Counterparty Foundation's Chris Derose identified hash rate can imply the health of the network. Derose noted his ideas on hash rate levels revealing network interest. “It shows where the enthusiasm is on the network on people investing in getting in, at least at some level,” he explained, seemingly referring to people investing into mining.
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