Bitcoin price is not the only thing moving parabolically, its hash rate is as well. According to the data centre, Blockchain.com the hash rate has increased 30% in the past month.
The rate, which refers to the number guesses an individual or network of machines can make at a hash each second, is one important factor in the overall valuation of the cryptocurrency. Traders have been carefully following this measure as it provides a measure of the number of miners trying to enforce the network’s rules, in other words, how attractive is for them the reward. Higher the rate, higher the momentum.
However, even though the momentum is getting stronger, the hashrate also means that the network is getting more protected, so it will be more difficult for a miner to succeed in the guessing of the hash of the block. Higher security allows the ecosystem to be properly distributed, removing power from mining pools. For now, there are still major pools dominating the whole hashrate, but the situation may change soon.
Mati Greenspan, Senior Market Analyst at eToro, affirmed “Hashrate is up nearly 6x since 2017 highs. We could lose all China miners tomorrow and Bitcoin would be just fine”.
All in all, this phenomenon of the hash rate becoming almost parabolic is showing us that the network is getting stronger and with the release of more powerful mining hardware, it looks to only continue.
You can read our latest [02/2020] Bitcoin market analysis here.