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Bitcoin Mining Power Hits Fresh All-Time High

Based on a rolling seven-day average, the hash rate has risen sharply from approximately 93 exahashes per second (EH/s) on Dec. 30 to quite 106 EH/s on Jan. 5. the simplest day overall was Jan. 1 when the hashing power exceeded 119 EH/s, surpassing the previous record of 114 EH/s set back in October.

Bitcoin hash rate (seven-day average)
Source: Blockchain.com
Bitcoin’s hash rate has increased considerably over 2019, rising from a weekly average of 40 EH/s at the start of the year to 80 EH/s by September.

That shift corresponded with the increase in bitcoin’s price from roughly $4,000 to quite $10,000 over an equivalent timeframe. The hash rate first crossed the 100 EH/s milestone on Sept. 26, but it wasn’t until late October that it stayed above 100 EH/s for quite each day .

A plus-100 EH/s rate has become an increasingly frequent sight, with just one day thus far this year reporting under the new benchmark.

Hash rate may be a measure of the processing power dedicated to a blockchain. A high hash rate means more miners are performing on the bitcoin network, suggesting it’s increasingly economically viable at both the present bitcoin price and difficulty level. A report published in September predicted bitcoin’s two-week average hash rate would cross 100 EH/s at the top of 2019.

Bitcoin’s difficulty level automatically adjusts to make sure block time stays broadly at round the 10-minute mark, no matter what percentage miners are performing on the network. It adjusts every fortnight , the last being on Jan. 1 when it increased by 6.75 percent, the most important since September.

Plummeting cryptocurrency prices in 2018 forced many miners to shut up shop, with only the most important ready to remain profitable. The industry faced an existential crisis as recently as last April when a agency in China – home to quite two-thirds of all bitcoin mining operations – called mining “undesirable.”

However, things looked brighter for miners last year because the market faded. quite half 1,000,000 new application-specific microcircuit (ASIC) rigs are estimated to possess come online in Q3 2019, following a summer during which the bitcoin price quite doubled.

In recent days, bitcoin prices have taken an upturn, rising nearly 10 percent from lows near $6,850 seen on Friday. the increase may have set the cryptocurrency up for a bullish trend shift, charts suggest, further encouraging miners.

2020 is about to be an important year for several miners looking to extend their capacity. Bitcoin’s block reward is predicted to halve to six .25 BTC within the coming months. While Bitmain is predicted to form job cuts in anticipation of a drop by revenue, consistent with Chinese media, other companies are significantly scaling their operations.

U.K.-listed mining firm Argo Blockchain announced Thursday it had acquired quite 3,600 new bitcoin ASICs, quite quadrupling its total mining capacity. The news caused the company’s share price to rise by 6 percent on the London stock market .

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