Latest BTC Blockchain Market Data Shows Bitcoin’s Hashrate Is Once Again On The Rise
Latest Market Data Shows Bitcoin’s Hashrate Is Once Again On The Rise
Over the past couple of months, the Bitcoin mining market has witnessed a total of three notable hashrate reductions (thus leading many analysts to call into question the long term viability of the asset). However, following these bearish market conditions, it now appears as though the premier altcoin is once again on its way back to reaching its optimal health.
— CoinMetrics.io (@coinmetrics) January 17, 2019
Hashrate Reversal Trend Is Currently Being Observed
Late last month, it was widely being reported (all over the internet) that Bitcoin’s native hashrate had dropped by a sizeable “7 percent” (that too over the course of just 24 hours). This massive dip was being attributed to many miners turning off their rigs or exiting the market completely— since most of them felt that mining the digital currency was no longer a profitable venture.
As a result of all these developments, many so-called experts were saying that Bitcoin was entering a “death spiral” and that the coming few days could mark the end of the currency altogether.
With that being said, it is now worth noting that Bitcoin’s hashrate has once again been on the rise recently— with numbers now beginning to reach pre/early December (2018) figures. To be even more specific, we can see that data available on Blockchain.com and DRIVE Insider clearly shows that BTC’s network hashrate has gone up to 40,219,475,700 GH/s— a number that is close to what the figure was in early December.
This comes as a welcome piece of news for BTC holders who were able to stave off the aforementioned market pressure and did not sell their assets (even when the premier currency was faced with a support level of around just $3,000).
More On The Matter
At this point in the article, it is also important to talk about the concept of ‘difficulty adjustment’ and how it affects the workings of a crypto-asset. In its most basic sense, we can think of difficulty adjustment as a mechanism that makes sure that despite constant price movement, the Bitcoin network always has the capacity “to carry out transaction hashing using a dynamic system that eases difficulty when miner numbers go down and vice versa”.
In this regard, increased difficulty directly translates to the fact that more and more miners are coming into the picture.
Last but not least, it is also worth pointing out that as things stand, Bitcoin’s current hashrate is roughly “three times of what it was in January 2018”. Thus, if the premier crypto asset is able to continue on its current price trajectory, 2019 could turn out to be quite the year for mining enthusiasts all over the world.
While it is still quite early predict whether or not the mining market will once again scale back to its former glory, over the course of the last few weeks, this niche industry (as a whole) definitely seems to be displaying positive financial trends (which seem to indicate that the crypto market as a whole could be in for a good couple of months).