• Bitcoin unable to test USD 7,000 resistance so far
  • Bitcoin hash rate has recovered most of its losses since the March crash, touching 114 quintillion hashes per second
  • A social media screenshot of a mobile app is making its rounds, rumored to be evidence that pilot testing of China’s digital yuan will take place in four selected cities

Bitcoin did not quite make it to testing USD 7,000 levels yesterday but has come close on several occasions even today, with USD 6,900 being the resistance before the desired test. Right now, as London enters noon trading, price is falling slightly towards USD 6,800 levels (CoinDesk, 12 noon UTC+1).

Whatever the outcome, clearly, miners are sensing an upturn in Bitcoin price fortunes, as hash power data now shows that Bitcoin’s network is experiencing a fresh influx of mining power to restore it to levels last seen before they dropped in March 2020.

Hash rate is a way to measure an estimation of the total computing power dedicated to securing the Bitcoin network and solve cryptographic equations that are necessary to find new blocks, to which verified transactions are added to and thus, confirmed. Bitcoin’s network is currently secured by such a high level of hash rate that for a malicious attacker to undermine the Bitcoin network, an inordinate amount of resources would be required, rendering it economically non-viable to do so. This is why Bitcoin is perhaps the most secure cryptocurrency in existence.

While hash rate isn’t fully accurate, a strong number has always been seen as a good sign for Bitcoin analysts and according to Blockchain data, this number has now reached levels last seen before Black Thursday’s crash at 114.9 quintillion hashes per second and steadily climbing towards the year’s high at 123.2 quintillion hashes per second. Bitcoin maximalist Max Keiser is among those who repeatedly say that Bitcoin price follows hash rate moves, and this was last demonstrated when Bitcoin crashed to the year’s low at USD 3,700 just as hash rate lost 30%. If they are to be believed, then this current hash rate retargeting should see a price boost of something like 10%.

Meanwhile, the news about China’s central bank digital currency (CBDC) just won’t stop coming, and the latest updates from the Far East today suggest we are edging ever closer toward a digital yuan.

Crypto exchange Binance senior employee, Ling Zhang, who heads the mergers and acquisitions department, circulated what she claims to be screenshots of a purported wallet app’s pilot version for China’s digital yuan. The Tweet was later reshared by Binance CEO Changpeng Zhao.

According to Zhang:

“Seems that testing wallet app is available for download. 4 cities will be available for the trial to begin with, including Shenzhen, Chengdu, Suzhou and Xiongan. Interesting that Xiongan, the newly state-level new area is one the first batch of the trails cities.”

The city of Xiongan’s New Area is thought to benefit from “enhanced intelligent” infrastructure that includes satellite information services, sensor recognition, a 5G network, supercomputing, and big data facilities. Some of China’s biggest tech names like Alibaba, JD.com, Tencent, and Baidu have already called Xiongan home and the Chinese premier himself, President Xi Jinping, has repeatedly visited the place.

Zhao noted how fast China’s “execution speed” is in trialing the country’s first CBDC implementation, and the Covid-19 pandemic crisis has done little to dampen its interest in blockchain legislation even, as BitcoinNews.com reported yesterday.

Just over a fortnight ago, the People’s Bank of China was reported to have finished the initial development of the digital yuan’s basic workings.

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