Bitrabo Editorial
Despite the fears, uncertainties and doubts (FUD) surrounding the cryptocurrency market, on-chain data indicates that the 7-day Bitcoin mining hashrate has continued to peak.
New All-Time High for 7-Day Bitcoin Mining Hashrate
According to data from on-chain analytics firm Glassnode, the 7-day hashrate has broken a new record of 381 EH/s. The “mining hashrate” measures the total amount of computing power that the miners have connected to the Bitcoin blockchain. When the value of this metric rises, it means miners are investing in more machines on the network at that time. Such a trend might suggest that miners are finding the blockchain attractive for mining activities.
On the other hand, lower values of the indicator suggest that some miners might be leaving the chain, implying that it has now become unprofitable for some miners to mine on BTC network.
The hashrate itself can give us an idea of the security of the blockchain. Generally speaking, the higher the value, the tighter the network security, since there are more devices that must be taken over to complete a 51% hack, granted that the hashrate is decentralized.
Here is a chart that confirms this trend:
The 7-day MA value of the metric seems to have been trending up in recent days | Source: Glassnode on Twitter
As shown in the graph above, the 7-day MA Bitcoin mining hashrate has been increasing for quite a while now, but the rise has been especially sharp over the past few months. This growth in the hash rate is expected as it has come with a rally in the value of the cryptocurrency. Miners depend on the USD value of their rewards to pay their bills and so a surge in price leads to an increase in revenue. The biggest miners usually expand their facilities and this results in an increase in the mining hashrate.
Interesting enough, the rise in the metric has remained constant in the last few weeks, despite Bitcoin having experienced significant market turbulence. The market FUD has been brewing, with recent lawsuits from the SEC against Binance and Coinbase. This suggests that miners are focused on the long-term and are willing to invest more in their facilities.
The latest achievement for the 7-day mining hashrate has marked a new all-time high of 381 EH/s.
BTC Price
At the time of writing, Bitcoin is trading at around $25,800, which is a decrease of 3% from the previous week.
BTC has gone down in the last few days | Source: BTCUSD on TradingView
Featured image from Brian Wangenheim on Unsplash.com, charts from TradingView.com, Glassnode.com