Bitcoin’s hash rate has reached the highest levels seen since November 2018. The increase in mining power suggests profits available at the current spot price as well as potentially expectations for a future price increase.
Surpassing 52 quintillion hashes per second Tuesday 19 March, mining difficulty has changed little for the last month or so, meaning new miners have had an easier time bringing their rigs online.
As well as benefiting the security of the Bitcoin network by adding more hash power, it shows growing confidence in the network’s future as more resources are invested in mining operations.
Taking to Twitter to comment on hash rate movements last year, Casa CTO Jameson Lopp proclaimed:
”Hashrate follows price… Miners are speculators too!”
Hashrate follows price. Some folks believe price follows hashrate, possibly because hashrate doesn't simply track ~spot~ price, but rather tracks some ~speculative~ future price. Miners are speculators too!
— Jameson Lopp (@lopp) June 23, 2018
Concerns were raised over low hash rates in alignment with price plummets in 2018 as less efficient mining rigs were disabled to avoid operating at a loss, although the remaining miners benefitted from steady difficulty rates.
Mining difficulty is expected to increase again shortly, however, given this hash rate peak with more miners expected to join the network.
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