The industry exists in a legal gray zone in China, and the miners in this story, concerned about attention from the government, asked not to have their full names or the names of the villages where their mines are located mentioned in this story.
Bitcoin News Today – Bitcoin hits the news again as the bitcoin network mining hashrate hits an all-time high. This makes it the second time this year that the network’s hashrate has gotten to its highest peak. In June 2019, the hash rate was about 65,000 Tera hashes per second or TH/s. This was the highest the network had ever achieved until barely a month later. Bitcoin latest update shows that the hashrate increased significantly from 68.4 TH/s to 74.5 TH/s. This increase in the network’s hashrate will be good news for miners as a higher hashrate means that there is a greater possibility of solving the algorithm quicker, getting the block sealed and getting their reward.
Bitcoin mine owner Liu, 29, stands in front of a wall of cooling fans at his mine where he houses and operates mining machines for miners who do not want to move to rural Sichuan, in Ngawa Tibetan and Qiang Autonomous Prefecture, Sichuan province, China, 27 September 2016. China, the world’s leader in Bitcoin mining, is dominating both the currency’s generation and the global trade in the currency.
Sichuan has become known as ‘the capital of bitcoin mining’ as entrepreneurial Chinese set up ‘mines’ there due to its abundance of hydropower, perfect for the high electricity needs of the large number of computers required for Bitcoin mining. Bitcoin mines are buildings with warehouse-like structures equipped with massive numbers of microprocessors with which ‘miners’ solve complex math problems and are rewarded in the digital currency.
Bitcoin News Today – Bitcoin Latest Update – What Does The Increasing Hashrate Say About Bitcoin?
Hashrate is the same as the computing power of the network and reflects how quickly the network can process or solve mathematical problems. Hashrates also reflect on the security of the network as higher hash rates most times mean safer networks. This makes the chances of a 51% attack occurring more difficult as more resources and equipment will be needed.
An increase in hashrate may also come with some challenges, one of which is a mining difficulty. On one hand, an increase in hash rate means better security; it also means more competition as more miners have access to the network. There is also the cost of mining equipment and infrastructure to handle the increase in miners.
Another challenge posed is the energy generated when there is an increase in the hashrate. The network would need more processing power and equipment to handle the increased hashrate. This action leads to an increase in the energy required, and the energy generated. Reports show that over 70 percent of bitcoin mining is handled by an energy that is renewable.
Research shows that an increase in the hashrate leads to the price of bitcoin increasing. This happens since the miners spend more on the infrastructure and cost to run the industry. As the cost to mine bitcoin increases, so too does the price of bitcoin. This happens as the miners would want to make a profit.
Researchers and analysts have wondered if the rise in the hashrate isn’t a by-product of the rise in the price of bitcoin. They also seem to think that another factor that may affect the price of bitcoin may be the upcoming halving event happening next year. Could miners be digging in for the halving event? Could the event be pushing a surge in the demand for bitcoin?
Bitcoin News Today – Bitcoin’s Price Prediction 2019 – Bitcoin Price Will Surge Higher In The Coming Months
Regardless of the reasons, bitcoin seems to be soaring higher as the price of BTC increases. Whether this is a result of a high hashrate is yet to be seen. The reason may lie in the halving event occurring next year. Records from previous halving events show that the price of BTC soars months before the halving process. Since the next halving is in May 2020, the price of bitcoin could be rising because of the expected halving.