Bitcoin Network’s Hash Rate Finds Stable Recovery After 50% Drop Since August
In the last years, Bitcoin’s hash rate has been growing very fast. In August, it reached 61 million TH/s but it fell down to 31 million TH/s. However, during the last few weeks, Bitcoin’s hash rate has stabilized between 31 million TH/s and 45 million TH/s.
During this bear market experienced by virtual currencies, miners were not profitable anymore. Several mining farms and individual miners had to shut down their operations. Some of the miners that remained on the network were also operating with losses.
However, as the Bitcoin hash rate dropped, the difficulty of the network was adjusted in order to help miners be more profitable. The latest adjustment took place on December 4th and it was very positive for the network. New miners were able to enter the space and some of the older miners that disconnected their farms re-entered the market.
Frank T.Young, chief product officer of Global Payments said that Bitcoin’s correction shows the sustainability of the currency and the whole crypto ecosystem. He then commented about the FED:
“When you watch the news coming from Wednesday’s Fed meeting ask yourself, ‘which approach is more sustainable?’ The ‘politically driven opinion of appointed Fed official’s or ‘math?’”
Bitcoin price is currently above $4,050 but it was recently traded close to $3,250. This price decline from $20,000 was one of the main reasons why the hash rate has dropped so fast during the last few months. Bitcoin rewards were not enough to cover all the expenses related to the activity. Nevertheless, this situation has stabilized after a difficulty adjustment on the network.