{"id":396564,"date":"2019-09-19T14:00:56","date_gmt":"2019-09-19T14:00:56","guid":{"rendered":"https:\/\/uniquehot.com\/?p=396564"},"modified":"2024-06-11T13:25:35","modified_gmt":"2024-06-11T13:25:35","slug":"bitcoin-hashrate-hits-all-time-high-as-price-dwindles","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/bitcoin-hashrate-hits-all-time-high-as-price-dwindles\/","title":{"rendered":"Bitcoin Hashrate Hits All-time High as Price Dwindles"},"content":{"rendered":"

The benchmark metric of miners confidence in the Bitcoin network established its all-time high on Thursday.<\/p>\n

Hashrate, which reflects the processing power of the Bitcoin network, reached almost 103 trillion ‘tera’ hashes per second. It showed that more miners are employing their computers to create and “hash” a block of verified transactions before adding them to the ever-growing string of blocks, called blockchain. In simple words, miners saw profits while\u00a0verifying and validating transactions on the Bitcoin blockchain. It, in turn, prompted them to increase their operational expenditure (typically, electricity input) on the network.<\/p>\n

\"bitcoin,<\/a>
Bitcoin hashrate hits all-time high | Image credits: Blockchain.info<\/figcaption><\/figure>\n

Miner(s) currently receives 12.5 BTC for completing a block. The cost of each bitcoin is presently fluctuating around $10,000. It means each confirmed Bitcoin block returns miners with almost $125,000.<\/p>\n

According to CoinShares<\/a>, it takes miners about $6,500 to mine one bitcoin. That shows that miners \u2013 as of now \u2013 could at least make a profit of $3,500 collectively, which prompts them to join the Bitcoin network. Overall, that leads to an increase in hashrate, meaning more miners are now competing with each other to validate blocks on the Bitcoin blockchain.<\/p>\n

Miners are HODLERS<\/h2>\n

The surge in Bitcoin hashrate followed an impressive price recovery in the BTC market. The cryptocurrency surged by more than 170 percent on a year-to-date basis while its bottom-rebound resulted in a 200-percent profit for investors. That typically helped miners \u2013 the producers \u2013 to meet their breakeven mining costs \u2013 and in some cases<\/a>, even accumulate bitcoin as speculative investments.<\/p>\n

According to Skew, a London-based data analytics firm, miners lately reduced their supply of freshly-minted bitcoin tokens to the retail market. They think the cryptocurrency would surge higher because of an event next year that would decrease its supply rate by half to 6.25 BTC.<\/p>\n

\u201cNot clear why miners would rush to add capacity into an event next year where the rewards will be halved,\u201d wrote Skew. \u201cThey must be very confident in their competitiveness or very bullish on price.\u201d<\/p><\/blockquote>\n

Renowned on-chain analyst Willy Woo also noted that bitcoin miners are\u00a0becoming holders as of late. They sell only the stash that could get them the fiat to cover their\u00a0operational costs. But, given bitcoin would become scarcer by next year, miners want to ensure they have enough in their hands should the demand for bitcoin rises in the mainstream.<\/p>\n

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Introducing the Bitcoin Difficulty Ribbon. When the ribbon compresses, or flips negative, these are the best time to buy in and get exposure to Bitcoin. The ribbon consists of simple moving averages on mining difficulty so we can easily see the rate of change in difficulty. pic.twitter.com\/6kBz4sLG1d<\/a><\/p>\n

— Willy Woo (@woonomic) August 1, 2019<\/a><\/p><\/blockquote>\n