Bitcoin’s Hashrate Now 7 Times Bigger That It Was In 2017

Bitcoin’s hashrate is now 7 times bigger than it was during the 2017 all time high while the price may be going through a period of consolidation and the network fundamentals are as strong as ever as we are reading further in the Bitcoin news now.

As it was pointed out in a tweet by the trader known as Rhythm, bringing the year to a close yesterday, Bitcoin’s Hashrate has secured the bitcoin network at a 7 times larger level than it was during Bitcoin’s price all-time high in 2017. Back in December 2019, the price was reaching for $20K and the hash rate was also pushing higher to a never seen 14.6 EH/s or 14,600,000 tera hashes per second. However, in the past few days, the Bitcoin network has seen the hash rate fluctuate around the 95 exa hashes per second mark.

The increase in hash rate has actually cooled off in the past few months and over the course of the year, it had been showing steady growth from about 40 EH/s following a slight dip at the end of 2018. The figure broke 100 EH/s for the first time in September 2019 and aimed to reach the 120 EH/s later in October. As it was demonstrated at the start of the article, BTC’s price certainly doesn’t always follow the hash rate directly and there’s some correlation as it is usually seen.

The drops in bitcoin price can often lead to a reduction in hash rate as the miners’ profitability drops and some miners capitulate. However, with this capitulation by both investors and miners, there is a necessary stage to get rid of the weak hands in preparation for a much stronger bull-run. The changes in hash rate also had a direct bearing on difficulty adjustments to maintain the rate of the new block roughly every ten minutes. Some of the analysts even look to make patterns in the bitcoin difficulty adjustment to predict the future movements of the price.

Bitcoin is currently trading at $7102, showing a strong start for the new year but we are yet to see how the winter will turn out for the benchmark cryptocurrency.