Bitcoin Network Strengthens: Hash Rate Hits New All-Time High

Network data shows that Bitcoin mining hashrate has continued its recent upward trend and reached a new all-time high.

Bitcoin’s 7-day average mining hash rate just hit a new all-time high

“Mining hashrate” refers to a metric that monitors the total computing power that miners have connected to the Bitcoin blockchain.

This indicator can be correlated to network security, as this combined computing power controls and manages the chain. If a malicious attacker intends to take control of the network, he will have to take control of most online mining platforms.

Thus, the more computing power that is connected to the network, the more difficult it will be to perform a 51% hack and, therefore, the tighter Bitcoin’s security will be. Of course, this only happens if the hashrate is sufficiently decentralized.

In addition to this correlation with security, the value of the mining hashrate can also tell us about the sentiment around the cryptocurrency among the chain’s validators.

When the value of this indicator increases, it means that miners are adding more energy to the network at the moment. This trend suggests that these chain validators find the chain attractive for mining.

On the other hand, a drop in the metric suggests that some miners have decided to take their machines offline, probably because they consider mining unprofitable.

The chart shows that the 7-day Bitcoin mining hashrate increased sharply between the beginning of September and the end of November. Miners expanded their facilities in preparation for a rally, which they had when BTC began its current operation.

The price of BTC directly influences the income of these chain validators, as the block rewards they receive are set in terms of BTC. Still, its dollar value varies depending on the spot price of the cryptocurrency.

This month, however, the metric began to see some decline even though Bitcoin saw additional bullishness. However, the Bitcoin mining hashrate rose again last week.

The reason behind this resurgence of hashrate momentum was the resurgence in popularity of subscriptions, which led to the explosion of transaction fees on the network.

The fee is the second component of miners’ income, so it makes sense that its increase would encourage this group to make more investments in their facilities.

With the indicator’s latest rise during the previous day, the indicator has now established a new all-time high as the entire decline since the beginning of the month has been reversed.

BTC Price

At the time of writing, Bitcoin is trading around $42,600, up 3% from last week.
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