Bitcoin Hash Rate Continues To Grow After 50% Decrease in December 2018
Bitcoin (BTC) Hash rate has reached a new 3-month high after falling 50% from August 2018 to December 2019. According to data provided by Blockchain.com Bitcoin’s hash rate reached 47 million TH/s. The last time that the network reached the same hash rate was back in November 2018 when Bitcoin dropped under $6,000 during the Bitcoin Cash (BCH) hash war.
When the price of the most popular virtual currency dropped down to $3,250 for the first time in more than a year, the network difficulty has also dropped substantially. At that time, several miners left the market due to the fact that they were not profitable anymore with Bitcoin prices so down.
Once the difficulty was adjusted downwards, new miners entered the space to start mining Bitcoin again. In general, if the hash rate grows, this could mean that users are bullish about the future of Bitcoin and its price. According to Max Keiser, a Wall Street veteran, price follows hash rate.
— Max Keiser, tweet poet. (@maxkeiser) August 8, 2018
At the same time, Jameson Lopp, the CTO of Casa, mentioned that the hash rate follows price at some point. He went on saying that miners are also speculators.
It is also worth mentioning that Bitmain, one of the largest mining companies in the cryptocurrency market is losing part of the market share. Back in 2018, Bitmain had around 40 percent of the network’s computing power. Nevertheless, they currently have 30 percent of the network’s hash rate.
This shows that Bitmain is not in a good situation. Back in November 2018, Bitmain started a hash war to support Bitcoin Cash’s ABC proposal against the Bitcoin SV (BSV) hard fork. This has affected not only Bitcoin Cash but also the whole crypto market. Earlier in December, the cryptocurrency market dropped to the lowest price in more than a year.
Bitmain has also been closing offices in different countries such as Israel or the Netherlands. It is not clear why Bitmain is taking such a decision. The company has also changed its CEO a few months ago, showing that there might be some changes in the whole firm as well.