Bitcoin hash rate hits all-time high
As a Bitcoin investor, the current market is a bit jarring. Do you keep holding your position? Do you sell now? Is it time to buy the dip? Other than price and value, you may want to look into hash rates.
Experts believe a cryptocurrency’s hash rate indicates how the digital currency might move in the future. An increase in hash rate means the value will most likely go up, and a drop implies a fall.
By that logic, Bitcoin is on solid ground. The digital currency recently hit a milestone of its highest hash rate to date.
A higher hash rate implies that:
- Bitcoin miners (those who create the blocks that become 1BTC) invest their time and money in better machinery in anticipation of future profits.
- It’s an indication that miners are investing their time and effort in crypto because they believe in its growth.
Bitcoin’s hash rate has been steadily rising since it crashed to a 6-month low of 84.3 total hash per second (TH/s) in June 2021, after the Chinese government banned crypto mining. As of the 18th of January, Bitcoin’s hash rate was 196.787, and it shows no signs of slowing down.
💡 Bonus: Higher hash rate also increases the difficulty of successfully hacking the Bitcoin network (successful hacking requires taking over at least 51% of a blockchain’s hash rate, which becomes less likely when the rate increases).