As Bitcoin jumped to $40k in the day following Federal Reserve’s raise hike by half a point, another number on the rise is its hash rate, which hit an all-time high of 221 EH/s.
Prices, hash rate, and Bitcoin
The Hash Rate is the Bitcoin network’s measuring unit of the computational power and speed used to carry on the mathematical operations that confirm and process transactions on the blockchain. This is why the Hash Rat can show the amount of global bitcoin mining activity, decreasing or increasing side by side.
It is believed that the price of Bitcoin and its measure, the Hash Rate, are related. A higher Hash rate can mean a rise in Bitcoin’s price. This is because the network is more stable and healthier. This isn’t a guarantee, however. Macroeconomic uncertainty could have a significant impact on the trading value of your network.
Also, many miners allege that the value of Bitcoin has an impact on the Hash Rate and not the other way around as the miners work around the network –joining or not– depending on the moment’s profitability.
Both the difficulty and hash rate are increasing simultaneously
Bitcoin difficulty hit an all time high of 29.79 Trillion just one week ago after hitting block height 733.824. The latest Arcane Research Weekly Report notes that the algorithm adjusted the difficulty to make it easier for miners to mine Bitcoin.
In the next adjustment, the difficulty is expected to fall by 0.07%. The Arcane report also notes that the difficulty increase has not hindered the rise in new hashrates. This means that the next adjustment could rather turn into another increase, “pushing the difficulty even further upwards.”
March and April were slower months for Bitcoin Hash Rate. However, the rate has accelerated and now stands at 221 EH/s.
Bitcoin Hashrate Swells 15% Since Last Week As Analysts Expect Mining Difficulty To Increase| Bitcoin Hashrate Swells 15% Since Last Week As Analysts Expect Mining Difficulty To Increase
Although 6 blocks/hour is the desired production level, Hash Rate surges over the past week have resulted in a block production rate of 6.45 block per hour.
The Arcane Research data also reports a 7% increase in Bitcoin’s daily transaction fees, going from $391,634 to $420,435 in a week. Ethereum still leads the charge in high transaction fees with an all-time record of $231 million, which is two-times the previous all-time record of $117 millions.
This happened as a result of Yuga Labs’ minting of 55,000 NFTs, which demanded a great amount of gas given the activity of buyers increased. Ethereum’s scalability problem outshines Bitcoin’s 7% surge in daily fees.
This also highlights the higher earnings of Ether miners compared to Bitcoin’s for over a year.
“Bitcoin transaction fees have been minuscule since the summer of 2021, only making up around 1% of miner revenues, while the rest comes from the block subsidy,” Arcane Research explains, adding that Ether miners find higher profitability because of the elevated gas fees, although their earnings are also more volatile.
Bitcoin Could See 10% Jump, As Volatility Drops To 18-Month Low| Bitcoin Could See 10% Jump, As Volatility Drops To 18-Month Low