- Bitcoin’s 7-day average mining hashrate sees a consistent rise despite a challenging price situation.
- Major public miners only control 28% of the global hashrate, alleviating centralization fears for now.
In light of our view on a recent article by Bitcoinist, the Bitcoin network has shown remarkable resilience and optimism as evidenced by its soaring hashrate. The hashrate, which measures the computing power miners commit to the Bitcoin blockchain, has been steadily climbing, indicating increased interest and investment by miners.
Hashrate and Its Implication on Security
The hashrate plays a pivotal role in the network’s security. A higher hashrate means that the network is more secure against potential attacks like the 51% attack. It becomes increasingly challenging to breach the network as more miners join and contribute their computational power. While there’s always a concern regarding the centralization of hashrate, current data suggests that major public miners only control 28% of the total hashrate. This figure, although worth monitoring, doesn’t ring alarm bells just yet.
Miners’ Perspective on the Bitcoin Network
When the hashrate sees an upswing, it generally means miners are adding more machines to the network. This suggests a positive sentiment among the chain validators towards the blockchain. Conversely, a dip in the hashrate might indicate that some miners are disconnecting, possibly due to the coin becoming less lucrative for mining.
Recent data from Blockchain.com showcases that the 7-day average Bitcoin mining hashrate has seen consistent growth since the beginning of the year. This uptrend is particularly noteworthy considering Bitcoin’s price challenges in recent times.
Revenue Dependency and Miners’ Strategy
The revenue of chain validators is intrinsically linked to the cryptocurrency’s price since their block rewards have a fixed BTC value, and only the USD value fluctuates. During bullish market phases, it’s typical to see the hashrate surge as miners attempt to maximize their revenues. Although Bitcoin’s price has faced some headwinds lately, miners have continued to add more computational power, highlighting their confidence in the asset.
The rising hashrate also signifies heightened competition among miners. As the hashrate (a representation of this competition) escalates, each miner’s share of the rewards diminishes. Yet, even amidst increasing competition and price volatility, miners’ dedication to the network remains unshaken, as evidenced by their continued investments in mining infrastructure.
Bitcoin’s current price hovers around $27,700, presenting a challenging scenario. Yet, the network’s fundamentals, such as its hashrate, showcase a different story of resilience and optimism.