On-chain data shows that the 7-day average bitcoin mining hashrate just witnessed a fresh rise to set a new all-time high (ATH).
bitcoin mining hashrate has seen a sharp rise recently
According to data from Blockchain.comThe 7-day average of the btc mining hashrate has seen growth recently. “Mining hashrate” here refers to a metric that tracks the total amount of computing power that bitcoin miners have connected to the blockchain.
The btc network runs on a proof-of-work (PoW)-based consensus system, where miners use this computing power to solve mathematical problems.
However, this entire group of energy does not work together; Miners use their individual mining farms to compete with each other to be the first to add the next block to the chain, rather than working collectively to achieve the same goal.
This is by design, since if power were centralized in a group of entities, bitcoin could not claim to be a “decentralized” network. But if there is no collective btc power, what is the meaning of the total hashrate? The answer is simple: it is a reflection of the sentiment among miners as a whole.
When the value of this metric increases, it means that miners find the btc blockchain an attractive venture. On the other hand, the fact that it has decreased suggests that some of these chain validators no longer find the network profitable, so they have decided to take their machines offline.
Now, here is a chart showing the trend in the 7-day average bitcoin mining hashrate over the past year:
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The 7-day average value of the metric appears to have seen a spike in recent days | Source: Blockchain.com
As shown in the chart above, the 7-day average bitcoin mining hashrate has seen rapid growth in recent days and has surpassed the ATH set at the beginning of the month. The reason behind this latest rise in the metric could lie in the bullish price action that the cryptocurrency has enjoyed recently.
Miners earn most of their income through the block subsidy, a fixed btc reward they receive as compensation for adding blocks to the network. The block subsidy is awarded at a more or less constant pace of time, so the only real variable related to miners' income is the dollar value of btc.
The mining hashrate growth at the beginning of the month came on the heels of a price rally. The miners expected the run to continue, but once it became clear that was not happening, they canceled their upgrades.
A similar pattern was also observed last month. It now remains to be seen if the latest spike in bitcoin mining hashrate would meet the same fate, or if this price rally would make the expansion worthwhile for miners.
btc Price
bitcoin's price rally has taken a hit over the past few days as the asset has retreated to the $67,100 mark.
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Looks like the price of the coin has been marching up recently | Source: BTCUSDT on TradingView
Dall-E Featured Image, Blockchain.com, TradingView.com Chart
