The “spiral of deathIt never happened, and Bitcoin miners continue to ride with the bulls. According TradeBlock, a provider of cryptocurrency data and trading tools for digital currencies, BTC hash rate averaged 7 days at 123.4 exahashes per second (E / Hs) on July 7, beating the March high. The 30-day average also increased to 114 E / Hs.
The increasing hash rates indicate the strength of the computing power that miners assign to process Bitcoin transactions. Highlighting that a high average shows the positivity of miners to receive high profits, which in turn reinforces the network. BTCUSD is trading above $ 9,400 at press time, with the highest hash rate of all time, and is moving above the 100 and 200 day SMAs since May.
Why is Bitcoin’s hash rate so high?
The current hash rate appears to derive from two main factors. First, the rainy season in China contributes to increased mining activities. According to a study by Crypto News FlashChina has more than 60% of the global hash rate.
A large percentage of the Bitcoin network works with Chinese hydroelectric farms. Due to continuous rain, hydro rates are cheaper and therefore more miners can activate additional mining rigs.
Another factor related to the increase in the hash rate is that mining companies began to implement integrated circuit devices (ASIC) application-specific to easily extract BTC.
Defying expectations
Remember when everyone was on the edge watching the third Halving Bitcoin on March 11th last? Bitcoin miners’ profits were halved to 6.25 BTC per mined block.
Some crypto analysts anticipated a “death spiral,” in which Bitcoin miners would abandon the network, leaving a BTC worthless due to the slow or no transfer. However, Bitcoin only saw minimal mining difficulty, reflected in its hash rate at the moment, but the miners became more optimistic than ever.
The billionaire Max Keizer He predicted that the BTC price could even rise to $ 500,000 as they all compete in a hash rate war. According to Keizer, Iran has already obtained 3% of the global hash rate, Venezuela will continue with 3-5%, and the United States will eventually increase market share by seeking 20%.
An increasing hash rate means that Bitcoin miners trust the network, and this often leads to a rise in BTC prices. According to analysts, a breakout above $ 10,000 may trigger Bitcoin’s expected rally.
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