Data on the chain shows that while the network is difficult to be high in history, Bitcoin hashrat’s 7-day average has just set a new record.
Bitcoin Hashrat has recently observed a sharp surge
“Hashirat” refers to an indicator that tracks the total amount of computing power that miners are currently connected to the Bitcoin blockchain. Traditionally, the metric was measured by hash per second (h/s), but today we use larger exahashes per second (th/s).
When the value of the indicator goes up, it means new miners are joining the network and/or old miners are expanding their farms. This trend means that the chain seems to be the attraction of these validators.
On the other hand, the metric of record declines indicates that some miners decided to disconnect, which may be because they no longer find BTC mining profits.
Now, here is a chart from BlockChain.com that shows the trend of Bitcoin’s 7-day average over the past year:
As can be seen in the above chart, the 7-day average Bitcoin hashrat has recently observed a sharp increase, suggesting that miners have added more computing power to the network. The indicator has now reached a value of 942.6 EH/s, which is a new record.
Although several factors have recently competed with miners, there is still this high. First, since ATH, the price has been following a bearish trajectory, close to $112,000. Miners earn income in BTC, but their bills are fiat currency like US dollars, so the conversion value of income is related to them.
Naturally, whenever prices rise, incomes will also rise, which can inspire them to upgrade their facilities. So, it is interesting that the uptrend of the indicator continues, even if the price drops. That said, this is still only a 7-day average, so how the trend will develop in the near future remains to be seen. The decline may be reflected with delays.
Another factor that contradicts miners is the increase in mining difficulty, an indicator built into the Bitcoin blockchain that can control how difficult it is for miners to find it on the network now.
The trend in the BTC Difficulty over the last twelve months | Source: Blockchain.com
Difficulties fluctuate automatically every two weeks. These adjustments change the metric in this way to neutralize the hashrate changes. This feature exists to limit miner income so that these validators always receive block rewards at a consistent rate.
This means that no matter how much the calculated power bitcoin miners increase, they can still get the same amount. If new miners join, this means the match becomes more intense for the same reward pool and if an upgrade occurs, the profit margins will be lower (both can only be with the price remaining the same).
Given this, difficulties can usually bring miners past. The latest adjustments took place on Friday, causing the indicator to reach new all-time highs. But so far, miners seem to have not retreated.
BTC price
So far, Bitcoin has shown no sign of recovery as its price is still trading around $104,200.
Looks like the asset's value has declined recently | Source: BTCUSDT on TradingView
Featured images from dall-e, charts from blockchain.com, tradingview.com
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