Hashrate (the computing power that maintains the security and strength of blockchain) of Bitcoin network has doubled since May this year, as per the reports by Fundstrat, a Wall Street-based investment firm led by Tom Lee.
70% decline in the BTC since January of this year has no huge impact on the growth of Hashrate. Sam Doctor at Fundstrat stated that “Despite BTC bear market, Hashpower doubled since May to 57 EH/s – Even with upgrades to existing equipment, implies almost 1 GW of new power consumption vs 5.2 GW in May ’18. Breakeven now at $7300 ($5300 cash BE) vs. $6000 in May,” The rise in the Hashpower of Bitcoin shows the positive interest of the Investors who are accumulating whatever they have.
David Sapper, Chief Operating Officer at Blockbid said, “The increased hash rate means people are here for the long-term because they’re happy to just accumulate what they have, potentially even run at a loss.”
He further added that the continuous increase in the Hashpower of Bitcoin demonstrates the satisfaction of the investors in the current ruling era of cryptocurrency.
But How It All Happened?
To understand it much clearly, we need to understand the relationship between the Bitcoin Price Fall, Hashpower of Bitcoin and Mining Difficulty.
If the mining difficulty remains identical but the price of BTC drops from $2000 to $900, then miner can only sell the BTC it generates from mining operation at $900. But before, with the same cost, a miner was able to generate $2000 per Bitcoin he mined. Now, with the fall in the Bitcoin price, we can expect the difficulty of the Investors to mine and a sudden fall in the hashrate of Bitcoin. Right? But, the Hashrate of Bitcoin network has increased throughout the year at a rapid growth.
How is this possible?
David Sapper and other cryptocurrency experts believe that this sudden increase in the Hashrate of Bitcoin network is the result of patience of the Investors and belief that they have in the cryptocurrency world that the market will recover to its previous levels and a hope that there will be growth in the Bitcoin mining sector.
Positive Note To Be Taken
This increase in the Hashrate of Bitcoin network indicates two things- Willingness of the Investors and the strength of the Bitcoin Blockchain network.
Despite a clear drop in the profit from a decrease in the price of BTC, the Investors never giving up hope is a thing to learn. Secure, more robust, flexible Blockchain network also made it possible to double the hashpower of Bitcoin