Bitcoin’s 7-day mining hashrate has reached a new all-time high, according to recent data. The mining hashrate is a measure of the total amount of computing power that Bitcoin miners have connected to the network. When this metric rises, it indicates that miners are bringing more machines online to the network, which is a sign that they find it profitable to mine on the network. On the other hand, decreasing values suggest that miners are leaving the chain, which implies that they are not finding it attractive to mine the cryptocurrency. The 7-day average Bitcoin mining hashrate has seen an overall uptrend in recent months, as shown in the chart below.
Miners rely on the USD value of their rewards, as they usually pay running costs like electricity using the dollar. Thus, BTC’s spot price rising, as it has during this rally, increases its revenue. This incentivizes existing miners to expand their facilities, and it also attracts new miners to the blockchain. The improved revenue due to the rally has been one of the driving forces behind the current hashrate rise.
The recent BRC-20 token craze caused transactions on the network to spike, resulting in fees skyrocketing. The fee revenue for these chain validators, which has generally stayed low on the BTC network over the years, saw a massive boost from this activity and further bolstered the miners’ revenue.
The mining difficulty is a feature that controls how hard miners will find it to mine currently. If the hashrate rises, miners naturally become faster due to the increased computing power. So, to balance this out, the network also increases the difficulty just enough that the miners are slowed back down to the desired rate. Because of the latest surge in the hashrate, the Bitcoin mining difficulty is set to go up in the next difficulty adjustment, which is scheduled to take place later today. According to BTC.com, the metric will go up by more than 3% in this adjustment.
At the time of writing, Bitcoin is trading around $27,100, up 1% in the last week. The asset has gone down in the past day.
Featured image from Brian Wangenheim on Unsplash.com, charts from TradingView.com, Blockchain.com.
This news was first seen here: Bitcoin Hashrate At ATH, Here’s How Difficulty Will Change on 2023-05-31 09:30:37
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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