Bitcoin network hash rate climbs to 6-month high

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The Bitcoin hash rate hit its highest level since late October 2018 as the spot price of BTC appears to surge above $5,800.


Bitcoin Hash Rate Reaches 4th Highest Level Ever

Data from Blockchain.com currently shows the Bitcoin hash rate – the computing power responsible for securing the network, at over 58 quintillion hashes per second (58 million tera hashes per second – TH/s).

This figure represents the highest hash rate seen since late October 2018 and the fourth highest hash rate ever recorded on the Bitcoin network.

The increase in hash rate indicates that more mining nodes are active on the network. With more mining nodes comes greater security for the Bitcoin network, making it harder for attack vectors to successfully compromise the fidelity of the blockchain.

Since the beginning of the year, the hash rate of the Bitcoin network has been steadily increasing over an average period of 7 days. In December 2018, the hash rate dropped by around 45% following the massive shutdown of mining nodes after prices plummeted by almost 50% in mid-November.

Difficulty increase nullifies fears of mining capitulation

As the hash rate increases, the mining difficulty should increase – the hashing power needed to discover a new block. Difficulty acts as a balancing parameter on the network, adding another layer of security.

Bitcoin Difficulty Level

So far in 2019, difficulty progression has been a recurring series of ups and downs as more miners log on after the mini capitulation at the end of 2018.

Bitcoin difficulty is currently at the same level as in late August 2018 when BTC was trading at around $7,000.

BTC Shakes Off Late April Decline

Meanwhile, the top-ranked cryptocurrency continues its price growth in 2019 with another significant 1-day price gain. BTC is down 6% in the last 24 hours and is expected to rise above $5,800.

May’s price gain also saw Bitcoin’s market capitalization surpass $100 billion. The last time the BTC market capitalization was north of $100 billion was in mid-November 2018.

Bitcoin ended April 2019 on a strong accumulation of 30% gains despite falling $400 following the $850 million Tether/Bitfinex bomb. BTC is currently up over 55% since the start of 2019.

With many analysts putting the cost of Bitcoin mining at between $3,500 and $4,000, the continued upward price trajectory means increased profits for miners. So, it’s no surprise to see more mining nodes logging on as BTC appears to be gearing up for another parabolic growth cycle.

Do you think there is a correlation between hash rate spikes and the increase in the spot price of BTC? Let us know your thoughts in the comments below.


Images via Blockchain.com and Twitter @krugermacroShutterstock

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