Bitcoin's Hash Rate Reaches a New All Time High (Again): Price Boost Ahead?
- Bitcoin has been struggling to climb over $12k for weeks. Could an increased hash rate indicate a higher price?
The price of Bitcoin has been struggling to mount the $12,000 resistance level for roughly three weeks since it surpassed $10,000 on July 27th. However, as pressure below the $12,000 level has continued to build, its seven-day average Hash Rate Hash Rate A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain Read this Term has reached a new all-time high.
Indeed, citing data from Blockchian.com, CoinTelegraph reported that as of August 15th, Bitcoin’s seven-day average hash rate hit 129.075 TeraHash/second (TH/s). The previous all-time high of 126.91 TH/s was reached on July 29th.
A Rising Hash Rate Could Indicate a Coming Rise in the Price of BTC
Hash rate is a measurement of how much computing power is being used on a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term at any given time. While there isn’t a direct correlation between a network’s hash rate and the price of its cryptocurrency, some analysts believe that a rising hash rate is indicative of a rising price to come.
This is because an increase in hash rate may signify an influx of new miners, or at least, more mining equipment onto the Bitcoin network, presumably because miners believe that they can make a profit.
A higher hash rate could also suggest that existing miners have more faith in an asset’s profitability. In other words, the entities that are spending money and resources to put the hash power into the network believe that their endeavors will be profitable, and therefore, they will continue to spend.
For example, earlier this year, Jeremy Britton, the chief financial officer at Boston Trading Co., explained to Finance Magnates that increased mining costs on the Bitcoin network mean that miners will hold onto their coins until higher price levels are reached, increasing the Bitcoin price 'floor'.
Jeremy Britton, chief financial officer at Boston Trading Co.
“As with mining any scarce resource (e.g. silver or gold), if mining becomes more difficult or more expensive, the price of the underlying asset will increase,” he said.
Before May’s halving, Britton explained that it costs roughly $3,000 “just in electricity to mine a single bitcoin (notwithstanding the cost of hardware, and internet access). This is why, when BTC ‘crashed’ earlier in 2019, the price did not go below $3,000; miners did not wish to sell for a loss.”
Now that the halving has taken place, however, “the price to mine a single bitcoin [has increased] to a minimum of $6,000. Whatever the new ceiling is, the floor will be $6,000, as miners will refuse to sell for a loss.”
The price of Bitcoin has been struggling to mount the $12,000 resistance level for roughly three weeks since it surpassed $10,000 on July 27th. However, as pressure below the $12,000 level has continued to build, its seven-day average Hash Rate Hash Rate A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain Read this Term has reached a new all-time high.
Indeed, citing data from Blockchian.com, CoinTelegraph reported that as of August 15th, Bitcoin’s seven-day average hash rate hit 129.075 TeraHash/second (TH/s). The previous all-time high of 126.91 TH/s was reached on July 29th.
A Rising Hash Rate Could Indicate a Coming Rise in the Price of BTC
Hash rate is a measurement of how much computing power is being used on a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term at any given time. While there isn’t a direct correlation between a network’s hash rate and the price of its cryptocurrency, some analysts believe that a rising hash rate is indicative of a rising price to come.
This is because an increase in hash rate may signify an influx of new miners, or at least, more mining equipment onto the Bitcoin network, presumably because miners believe that they can make a profit.
A higher hash rate could also suggest that existing miners have more faith in an asset’s profitability. In other words, the entities that are spending money and resources to put the hash power into the network believe that their endeavors will be profitable, and therefore, they will continue to spend.
For example, earlier this year, Jeremy Britton, the chief financial officer at Boston Trading Co., explained to Finance Magnates that increased mining costs on the Bitcoin network mean that miners will hold onto their coins until higher price levels are reached, increasing the Bitcoin price 'floor'.
Jeremy Britton, chief financial officer at Boston Trading Co.
“As with mining any scarce resource (e.g. silver or gold), if mining becomes more difficult or more expensive, the price of the underlying asset will increase,” he said.
Before May’s halving, Britton explained that it costs roughly $3,000 “just in electricity to mine a single bitcoin (notwithstanding the cost of hardware, and internet access). This is why, when BTC ‘crashed’ earlier in 2019, the price did not go below $3,000; miners did not wish to sell for a loss.”
Now that the halving has taken place, however, “the price to mine a single bitcoin [has increased] to a minimum of $6,000. Whatever the new ceiling is, the floor will be $6,000, as miners will refuse to sell for a loss.”