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High bitcoin hashrate supports growing optimism

Bitcoin hashing speed, computational power, ensuring network security, has reached levels not seen since the beginning of November 2018. On March 19, there was a surge in bitcoin hash rate for 52 quintillion hashes per second, according to Blockchain.com.

Hash speed measures the performance of bitcoin miners that protect the network. Simply put, the higher the hash rate, the more resources are required for a successful bitcoin attack.

The growth of hash speed also leads to the fact that new miners are joining the network. With the difficulty of mining, while remaining relatively flat for a month, the new miners found that it was easier for them to bring mining to the Internet. Although the hash capacity is now rising, the complexity, the countermeasure function is likely to increase in the coming days.

The last surge may be significant, since it means that the downtrend in the hash rate can now be definitely broken along with the previous burst of 50,000,000 TH / s, observed in early February.

In general, network security is at its highest since the beginning of November 2018, marking a 4-month high . It is also approaching a record high of about 62,000,000 TH / s, set in August 2018.

Hash speed is also an important metric for determining the mood of miners who protect the network. This is due to the fact that miners must be confident in the future of the network in order to invest capital in financing operations.

Jameson Lopp, for example, believes that miners are speculating on the future price of bitcoin. Therefore, it is possible that miners are starting to return, as the price of BTC is currently experiencing a four-week win band.

“Hashrate follows price. Some people believe that the price follows the hashrate, perhaps because the hash rate does not simply track the price, but rather tracks some speculative future price. Miners are speculators too! ”, Said Lopp

The restoration of the hash bets also suggests that the unreasonable fears of the "death spiral of extraction" are now put an end to. When the price fell throughout 2018, the least efficient miners probably turned off the equipment to avoid loss, reducing the overall hash rate. However, the bitcoin complexity adjustment function made sure that the other miner made a profit.

“This is the beauty of adjusting difficulty. Every miner that is disabled increases the profits of the remaining miners, ”said entrepreneur Matt Odell

But now more and more miners go online to raise the hash rate. This suggests that they are currently making a profit at the current spot price or are expecting growth in the market in the future.

It is worth noting that today's bitcoin hash rate is four times higher than when the BTC price reached a record high of almost $ 20,000 in December 2017.

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