Bitcoin Hash Rate Follows Bitcoin and Gains Over 40% Within the Past Two Weeks

[PRIBO247]

* After two months of decline, analysts have noticed
stability in Bitcoin hash-rates, even a slight
increase, indicating that miners might be returning to
the industry.
* The significant cost of electricity and mining
equipment were previously too much for Bitcoin
miners due to the low BTC value, which is why
many of them decided to leave the industry, and
hash rates dropped as a result.

Along with the Bitcoin price, Bitcoin’s Hash-Rate is
showing high volatility. After reaching a peak of 62
Exahash (10^18) per second on Sep. 25, we observed
two months of drastic decline down to 32 Exahash on
Dec. 7. This decline has halted in the last two weeks
and has stabilized around 35 Exahash, and in the last
few days, we are even starting to see the hash-rate go
up to 40-45 (40.6% increase). We could probably
correlate this to the recent rally of the entire crypto
market we have observed in the last week.

The importance of hash rate
Simply put, crypto mining is a process of performing
complex mathematical calculations. By doing this,
miners are searching for a specific number that will
“solve” a block and provide them with a reward in the
form of Bitcoin itself. At the moment, the BTC
blockchain rewards miners with 12.5 BTC Block
Reward per each block solved.

Every calculation attempt to solve these equations is
known as a hash. Meanwhile, the hash-rate is the
number of hashes that are done per second. When we
are talking about the Hash Rate of the Bitcoin network
we are talking about how many hash attempts are being
conducted per second in the entire network. All of this
is done through ASICs, which is short for Application
Specific Integrated Circuits. In short, this is the
equipment used for Bitcoin mining, which has become
extremely popular due to its ability to solve the
complicated equations required for mining BTC.

However, the process of mining Bitcoin is also quite
expensive. Even though mining rigs themselves are
very valuable, the mining process also consumes a lot
of power. This, in turn, means that miners have to deal
with exorbitant electrical bills. If Bitcoin’s price is high
enough, they can easily make a profit out of rewards
they receive and pay their bills at the same time.

However, after an entire bearish year marked by two
market crashes, the price of Bitcoin is lower than it has
been in over a year while solving the blocks requires
more and more resources. Low BTC value means lesser
earnings from mining, which in turn means that miners
cannot generate enough profit to cover their costs.
Some of them even started experiencing losses, which
is why many of them decided to abandon the mining
industry, and entire mining farms were shut down.
Because of that, the growth of hash rates is significant
in the crypto industry, as it indicates that miners might
be returning.

The price of Bitcoin has grown by 30% in the last week,
increasing by $1,000. At the time of writing, Bitcoin
price sits at $4,235.69, after a 5.7% increase over the
previous 24 hours. The coin has also experienced
massive growth in its market cap, and the same is true
for the total crypto market cap, which grew by over $40
billion in a single week.

The rest of the market is also experiencing significant
increases, with multiple top 10 crypto coins growing
even more than BTC. Still, Bitcoin’s dominance is firmly
established, and with more than half of the total crypto
market cap in its possession, Bitcoin is unlikely to be
challenged by any other coin anytime soon.
The hash-rate, as well as many other measurements
such as difficulty, volume, tx price, etc., can give us
great insight into the Bitcoin and Crypto market
sentiment. And when we see this kind of changing trend
in one of them, this might indicate a more significant
changing direction for the whole industry.

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