Bitcoin hash rate returns to all-time high despite price pullback

Texas could raise funds through NFT and harness 'abundant' energy to mine Bitcoin

Bitcoin hash rate returns to all-time high despite price pullback For Hannah perez As the price of the major cryptocurrency slides, its network is getting stronger. Ethereum’s hashrate levels also reached new heights.

***

The hash rate of the largest blockchain, Bitcoin, continues to rally to chase new highs since China imposed one of the largest cryptocurrency bans in history.

During this week, the hashrate or hash rate of Bitcoin, the unit of measurement for the processing power of a network Blockchain, has been climbing back to record highs. According to data from Blockchain.com the hash rate of Bitcoin has risen to 170 terahashes per second (TH / s) after falling below 100 TH / s just six months ago.

Bitcoin hash rate returns to all-time high despite price pullback
Source: Blockchain.com

As reported Daily bitcoin, China’s crackdown on the cryptocurrency industry and the massive shutdown of mining operations in the region led to a drop of around 75% in the hash rate of Bitcoin around mid year. At that time, the levels fell to 57 TH / s after having reached an all-time high of 190 TH / s in May.

The metrics of Blockchain.com they coincide with that of other data portals on the Internet. For example, according to YCharts, the hash rate of Bitcoin rose to 190 TH / s at the beginning of the week and currently around 170.9 TH / s. The data from BTC.com indicate the same numbers.

See also  Bitcoin mining profitability falls to 2020 lows, with prices in the red

It should be noted that a rate of hash Higher means more competition among miners to validate new blocks. It also means that the network is more secure, since the scale of resources required to carry out an attack is increased by 51% reducing the chances of an attack of this type.

Bitcoin hashrate rises as price slides

Although China’s restrictive measures initially wreaked havoc on the hashrate from BitcoinAs well as the evolution of asset prices, these metrics have been progressively recovering in recent months as miners reconnect their equipment abroad.

The ban saw a major exodus of cryptocurrency miners to countries abroad. As a result, China has lost its dominant stake in mining Bitcoin. After having represented more than 70% of the total hashrate of the network for 2019, the Asian country now has a 0% stake in the mining power of Bitcoin, according to data from the University of Cambridge.

The phenomenon has favored the crypto sector in the United States, a nation that now represents 35% of the global rate of hash from Bitcoin. However, it is worth noting that despite these figures, various reports suggest that cryptocurrency mining activities in China have not come to a complete halt and some clandestine operations remain despite the ban.

See also  New milestone: over 4,000 BTC can now be sent on the Bitcoin Lightning Network

The reconquest of optimal levels in the hashrate from Bitcoin comes amid a major price correction in the digital currency market. Bitcoin (BTC) has been registering a significant price decline in recent weeks after reaching a new all-time high close to $ 70,000 in early November. At the time of writing, the top cryptocurrency is trading around $ 50,000.

Bitcoin hash rate returns to all-time high despite price pullback
Bitcoin price evolution in the last six months – Source: CryptoMarkets

The price drop appears to be part of a general bearish trend within the digital currency market that arises amid concerns about the discovery of a new strain of coronavirus that has been dubbed Omicron. Increasing the hash rate of Bitcoin suggests that miners are viewing mining as a lucrative activity despite falling prices (which in turn imply lower rewards relative to the dollar).

Ethereum hash rate also strengthens

On the other hand, the hash rate of Ethereum, the second largest blockchain in the world, has also strengthened in recent months.

The Chinese ban had caused a slump in hash levels of Ethereum around mid year; although not as significant as the fall of hashrate from Bitcoin As reported Daily bitcoin, the mining power of Ethereum it was down 25% by the end of July.

According to updated data from Etherscan.io, the hash rate of Ethereum it has also been progressively rising to record new highs. Currently the mining power levels of the network are at 909,842 gigahashes per second (GH / s), the highest in the entire history of that blockchain. This network has seen a much more pronounced recovery than that of Bitcoin.

Bitcoin hash rate returns to all-time high despite price pullback
Source: Etherscan.io

Meanwhile, Ethereum seems to be beating Bitcoin in other mining metrics. During November, miners’ income from Ethereum (ETH) outperformed those of Bitcoin for the seventh consecutive month.

See also  These are the 3 most used oracles in DeFi

As reported The Block, the miners of ether reported revenues of USD $ 1.99 billion, an increase of 11.8% compared to October, and overall they were 18.7% more than the income of the miners of Bitcoin in November, in dollar terms. The miners of Bitcoin they earned $ 1.69 billion during the same period, a 2% decrease month-over-month.

The price of ETH has also seen a correction in recent weeks. Having hit an all-time high of $ 4,800, the second-largest digital currency is trading around $ 4,500 at press time.


Recommended reading


Article by Hannah Estefanía Pérez / Daily bitcoin

Image from Unsplash

Leave a Comment

Your email address will not be published.