Despite the fact that Bitcoin is still stuck near $20,000, its hashrate has never been better. A feature that could play favorably on the course of Bitcoin and bring the date of the next halving closer.
The Bitcoin hashrate is skyrocketing!
Several parameters help to better understand the evolution of the Bitcoin network. And among these main parameters, let’s mention the hashrate, translated into French by “hash rate”. This hashrate, which represents the computing power of the network, is a key indicator of the Bitcoin network.
And this one just hit an all-time high 281.79 million terashash per second.
A sign of good health for the network?
This increase in hashrate is good news for the Bitcoin network. In fact, this often creates the participation of miners in the validation process of new blockchain blocks. A hash rate that increases, therefore indicates an increase in computing power around that blockchain.
But it mostly transfers the trust of minors in the network. In fact, despite Bitcoin still being 70% below its all-time high, miners seem to believe in a return to the top. From a medium to long term perspective. The increase in hashrate is also the result of an increase in the number of miners on the network. This parameter also reinforces the growing popularity of Bitcoin, despite the fact that prices are still relatively low.
It is difficult to know how much of this increase in hashrate is the result of the recovery in the price of Bitcoin. Anyway, the mother of cryptocurrencies is currently flirting with $22,000. An increase of 2.73% in the last 24 hours. But this price level is still extremely low for the hashrate.
Date half brought forward!
This increase in the hashrate has a direct impact on the Bitcoin network: the progress of the expansion date. Scheduled for March 2024, the expansion date could finally come earlier. As of the last quarter of 2023, as detailed by The Tie Twitter account:
As Bitcoin Hashrate rises to all-time highs, there is an important second-order effect to keep in mind: The Half.
— The TIE (@TheTIEIO) September 12, 2022
The half spread designates the reward given to miners for each mined block. Currently, miners earn 6.25 BTC per mined block. During the next half, this reward will be only 3.125 BTC per mined block. Note that the half takes place on the Bitcoin blockchain, every 210,000 blocks determined. This mechanism allows the blockchain to be deflated. In fact, if more than 91% of the Bitcoin tokens are already in circulation, the last Bitcoins will be determined to be accessible after the year 2100. Guarantee a certain kind of scarcity.
Between the two previous halves (2016 and 2020), BTC trading volume increased 50 times. During the last half of 2020, transaction fees around Bitcoin increased by more than 600%.
Also read: Crypto bullrun in 2024?