Bitcoin Hashrate Climbs To New Highs As Price Recovers Above $42,000
Bitcoin’s hash rate has continued its recent climb, taking the waves to new highs. The digital asset that suffered after the market crash only seems to suffer in price as it has kept up with the pace in other avenues. After the weekend, bitcoin registered a significant spike in its hash rate, leading to a new high of 248.11TH/s in a 24-hour period.
Bitcoin Hash Rate Hits New High
Between February 11 and 12, the bitcoin hashrate hit a new high. Miners who have been an integral part of the network since its inception have continued to increase their support for it. Miners not only benefit from miners through blocking rewards and transaction fees, but they also help to secure the network with their operations. That is why the recent increase is important.
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The hash rate continued to evolve around the same level for most of the month, fluctuating above and below 200 TH/s. However, on Saturday Blockchain.com reported that the hash rate had increased by 31% in one day. It is one of the most significant growth recorded on the blockchain in recent times.
In just one year alone, the hashrate has increased by 54%. This stems from China’s crackdown on mining, with the region’s hash rate dropping to nearly zero. The digital asset has since recovered from this and soared to new highs.
With more power coming out of miners’ computer machines, the hash rate has continued to rise. In turn, it helps straighten out the bitcoin network, an overall win for the asset.
Why is the hash rate increasing?
The increase in hash rate can be attributed to the number of miners entering the space. Gone are the days when bitcoin mining was performed on computers with graphics cards. Today, there are entire farms devoted to the activity of thousands of mining machines all connected to give the miners a better chance to mine a block. It has grown into a robust multi-billion dollar industry.
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On the other hand, small miners are also ramping up their activities. Although their small hash rate makes it more difficult to make a profit, these small miners find refuge in mining pools where they pool their hash rate, increasing their chances of finding a block.
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This has worked for some miners who have been able to mine full blocks and get the full reward despite their small hash rate. This will bring more small miners online, but the real values come from the big players.
Bitcoin’s hash rate is expected to continue to rise as more players enter the mining industry. It has become a haven for investors looking to invest in bitcoin-adjacent products. Currently, Russia has overtaken China and the United States to become the country with the highest hash rate.
Featured image from CoinDesk, chart from TradingView.com