Not a lot of changes when it comes to Bitcoin’s price this week. The price has plummeted once again before stabilizing at $20K while the miner hash rate has reached its peak. The hashrate, or the amount of hashes produced in a second, is one of the key Bitcoin security metrics. It’s one of those stats Bitcoin miners pay close attention to. The more hashes are being churned out, the better the security. It makes Bitcoin more resistant to attacks, although it does nothing for the price.
When it comes to the price’s volatility, things remain unchanged. The market is in the green as of right now, but there hasn’t been any upward progress that will take Bitcoin toward much greener pastures.
Bitcoin’s Hashrate Peaking
Bitcoin miners will obviously never stop mining, no matter how regulation changes. The Bitcoin hashrate is continuing to grow, reaching a peak of 258 exahashes per second on Tuesday. While Bitcoin’s price has been in a free fall this year, the hashrate is up by over 40%.
What does that mean? Well, first and foremost, it shows that miners are bullish on Bitcoin’s future. It may not look great right now, but things will be better. The latest tight band Bitcoin has been trading in and the growing hashrate might result in a sharp upward adjustment in mining difficulty. Miner margins will be squeezed even more than before.
According to some experts, the growing hashrate might be a result of XP’s coming online. Bitmain’s latest model is the S19 XP Antminer. This is one of the world’s leading mining hardware suppliers, and it obviously has a major impact on the hash rate.
More and more miners are coming online, especially since Ethereum’s mining protocol change. They are trying to solve valid blocks and receive a 6.25 BTC reward which equals around $120,000. Blocks are solved and added to the Bitcoin blockchain every 10 minutes, and as more and more are mined, the mining difficult is adjusted. The difficulty has been on the rise since March 2022, which means that the blocks are getting increasingly harder to solve (mine).
Miners Still Support the Network
While Bitcoin’s price has been falling, dropping over 50% of its all-time high, miners still support the network. Which is a good thing. It shows that the crypto dream is not dead, and that once the world’s macroeconomic issues are solved, crypto prices might be on the rise again.
With the hash rate pushing records in times of a major crypto and global financial crisis, it’s obvious that Bitcoin is not dead. On the contrary, a growing number of miners still trust the process, and will do everything in their power to keep the dream alive. The mining difficult will continue to rise, and once the world’s current problems go away, prices may continue going up. At least that’s what we’re all hoping for, but let’s see what the upcoming winter brings first.