Bitcoin Bull Market in Prospect? — Bitcoin Hash Rate Reaches All-Time High
The Bitcoin hash rate has reached a new all-time high these days and a 15% increase in the last two weeks. According to numerous experts, this could be a bullish sign for the Bitcoin price, which has yielded another 20 percent last month.
As the data from Blockchain.info confirm, the Bitcoin network hash rate has risen steadily in 2018, despite the fact that the Bitcoin price has fallen significantly since the beginning of the year.
The increase in June, as well as the steady increase in hashrates since the beginning of the year shows that at least the mining industry continues to boomer and has positive expectations for the Bitcoin price. Although the BTC price is currently still below the $ 8,000 mark, there is an increase in the hash rate and increased competition within the Bitcoin network to create the blocks, which helps improve the security of the entire network.
The hash rate refers to the computational power of the Bitcoin network the network has to solve the mathematical computation operations required for security reasons before a block can be written to the blockchain. The hashrate reflects the number of attempts that a unit can make when it solves the arithmetic operation.
Since mining is known to be very costly and has a high consumption of electricity, miners must always keep an eye on the economy. From a certain BTC price, the mines can become uneconomic. The fact that the hash rate continues to rise despite the decline in the Bitcoin price, according to many experts, shows that at least the miners continue to be bullish and expect a price increase in the near future.
Former Wall Street trader and journalist Max Keizer wrote, “ Price Following Hashrate “:
Naeem Aslam also wrote in May for the Forbes magazine:
From the data presented, we can conclude that the overall outlook for Bitcoin, at least in the eyes of miners, is bullish. After all, miners do not want to use their resources to mine a digital asset that they consider worthless.
In addition to the hash rate, transaction fees and mempool size have improved as well, partly due to the increasing popularity of Segregated Witness (“SegWit”) and the low volume of Bitcoin transactions.
A Bitcoin transaction currently costs an average of around $ 0.60.
The transaction volume has already been fluctuating between around 150,000 and 220,000 transactions per day for months, and is at a low level compared to the period from November 2017 to January 2018.
Marko Vidrih @cryptomarks
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