• Sat. May 21st, 2022

Bitcoin network’s new hash rate suggests price is next

Bitcoin hash rate (BTC) hits new all-time high, monitoring resource data from August 19 shows Blockchain.com.

The highest coin hash rate continued to break previous records throughout the summer, reaching a whopping 82.5 TH / s today.

Bitcoin network hash rate, 1 year chart. Source: blockchain.com

In a tweet job earlier this month, Bitcoin investor Max Keizer reiterated his mantra:

“The price follows the hashrate and the hashrate chart continues its 9-year bull market.”

The argument is that the higher the Bitcoin hash rate, the more secure the network, the higher investor confidence, which will increase demand. Therefore, Keizer argues that price is catching up with network fundamentals.

Network fundamentals

A cryptocurrency’s hash rate – sometimes referred to as a hash or computing power – is a parameter that measures how many calculations a given network can perform each second. A higher hash rate means more competition between miners to validate new blocks; it also increases the amount of resources needed to perform an attack to 51%, making the network more secure.

The string of new records released throughout the summer is a bullish sign, with analysts and traders supported by signs of the strength and robustness of the network.

Look ahead

Bitcoin’s halving – a pre-coded 50% reduction in block rewards for miners – is due for some time: May 2020.

While the event may have bullish implications for a coin’s price (increasing its rarity), its impact on miners is closely watched, with some fearing that lower block rewards will deter network participants and harm the network. network hashing power.

This summer, Charlie Lee, creator of Litecoin (LTC), who predicted a shock after the coin’s mining ecosystem was halved, saw his expectations overturned when the network’s post-event hash rate fell. revealed as robust as ever.

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