The turbulence on the crypto market and the price drops that have appeared on the exchanges in recent days have not harmed Bitcoin – on the contrary! He has just reached a new record level in terms of hashrate.
What does Bitcoin’s record-breaking hashrate mean to the industry?
This record is nothing more than a clear indication that more and more miners are connecting to the network and digging up the largest and best known hashrate. This is all the more important because recent months have not been particularly gracious for miners, and the profitability of BTC mining has not encouraged them to connect machines and generate expensive electricity for digging. The record hashrate clearly shows that the situation has changed. Many miners recalculated costs and decided it was time to start digging.
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Perhaps the reason for the increased interest in Bitcoin’s digging is because of its approaching halving. Soon the BTC chain will split and the miners will get half as much Bitcoin for digging as they do now. So the coming months may be the last opportunity for them to dig up BTC with a higher reward for the block, and thus earn more.
Halving Bitcoin – what will change in the crypto market?
Halving Bitcoina is waiting for the miners in a few months. In addition, they will receive a reward of 12.5 BTC for 1 excavated block. After halving it will be only 6.25 BTC. The difference is huge and may also result in a significant price increase for 1 piece of this cryptocurrency. If this is the case, and there are historical grounds for it, the price of BTC may even increase several times.
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With such a significant potential increase, it is worthwhile for miners today to add to their business, which is digging, so that at the end of the year – assuming the price of BTC increases – they can sell their output at a much better price. It can be seen that this kind of thinking prevails among miners, as indicated by the record-breaking hashrate, which is a sign that more and more people are being connected to the digging network. To a large extent, these are not so much new miners as miners who have so far kept their excavators off, waiting for better times for digging.
Perhaps the increased interest in digging is also being stimulated by the nerves of the financial markets and currency turmoil. It is hard to say whether Bitcoin can be a safe haven for investing money here, but it seems that many investors think so.
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What is Hashrate?
More technically, it is a definition of the hashrate level itself: it is a cryptographic indicator that collects information from the web and calculates the speed of the hash (power) in the process of digging a cryptocurrencies. A hashrate is often referred to as a unit of excavator performance and can be presented as such: 1 000 h/s = 1kh/s. For the layman, this means absolutely nothing, but for the whole crypto industry, which could not exist without miners, i.e. without those elements of the network that are involved in mining, confirming transactions and development – the increase in their interest in digging is crucial. That is why the record hasrate level is so exciting for the crypto industry today.