Bitcoin hash rate record high shows miners long-term bullish

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Bitcoin hash rate record high shows miners long-term bullish

Bitcoin (BTC) has continued to create new records for its network hash rate this month, indicating that mining companies have shaken poor pricing performance.

Hash rate hits record in October
Data from the Blockchain monitoring feature confirmed that the hash rate reached 11.4 billion hashes per second on October 23.

 

Bitcoin hash rate (12 months)

Bitcoin hash rate

This is the largest reading ever and was also repeated by other companies, such as BitInfoCharts, which also recorded a record of over 11 billion megabytes. The number of currency dances has reached a record 13.4 billion since October 10.

Because the hash rate cannot be accurately measured, all graphs depend on previous period lock time estimates.

Hash rate refers to the overall computing power involved in verifying transactions on the Bitcoin blockchain. Powerful features indicate increased network security and interest in bitcoin mining potential.

In other words, miners expect higher bitcoin prices in the future.

Miners profitability is accepting test of latest price drop
As the Cointelegraph reported, the network hash rate seems to have experienced volatility last month, and the day before analysts explained that statistics did not mean that miners were abandoning Bitcoin, Blockchain readings were down 40%.

However, in the face of falling bitcoin prices, the hash rate is rising, highlighting its dedication to investing in the industry and its future profitability. For example, mining giant Bitmain launched this week the so-called “largest in the world” in Rockdale, Texas.

On the other hand, in fact, the profitability indicator is nearing its lowest point in 12 months, a miner tells Cointelegraph that $ 6,500 is the reserve price to maintain participants’ profitability. Through it, Bitcoin can then see a decrease in hash power as the miner can choose to shut down his platform until difficult adjustments and / or price recovery.

According to investor Dovey Wan, Bitmain’s Antminer S9 mining platform model (one of the world’s most popular miners) is already at a loss from current prices, even without considering miscellaneous costs such as electricity bills.

Therefore, it remains to be seen whether the latest decline in bitcoin prices will have a negative impact on hash rates.

Half block reward below block
From May 2020, miners will compete for half of the new bitcoin for each new block, which is 6.25 BTC instead of 12.5 BTC.

Up to $ 63 million in funds is not available each week, and commentators generally expect events in half the block to greatly increase bitcoin prices.

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