Bitcoin Hashrate Swells 15% Since Last Week As Analysts Expect Mining Difficulty To Increase

Christian Encila

3 years ago

2 mins read

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Bitcoin mining difficulty fell by 1.5% last week, following the full recovery of China’s mining ban last year.

China started to crack down on cryptocurrency, prohibiting financial institutions and payment companies from providing services related to cryptocurrency transactions.

China accounted for roughly 75% of the “average monthly hashrate share,” a term used to calculate the computational power needed to mine Bitcoin.

After Beijing effectively banned the country’s cryptocurrency miners in May, more than half of bitcoin’s hashrate disappeared from the global network. But as of the early months of 2022, Bitcoin mining had fully recovered.

On March 3, the difficulty decreased by 1.5 percent following six straight increases.

Bitcoin’s mining difficulty is currently at approximately 27.55 trillion, and processing power has been up since the last adjustment.

Bitcoin’s hashrate has climbed by approximately 15% since the difficulty adjustment and by 30% since it reached 169 EH/s two weeks ago.

The network’s processing power is currently around 218.11 EH/s, and it has managed to remain a little over the 200 EH/s mark for the last 10 days.

The Relationship Between Hashrate And Bitcoin

The amount of processing power utilized to validate transactions and add blocks in a Proof-of-work (PoW) blockchain is referred to as the “hashrate.”

Bitcoin, one of the world’s most prominent blockchain networks, is a Proof-of-Work (PoW) blockchain that employs mining to produce new currency and validate transactions.

Hashrate may reflect the number of persons or organizations active in the mining process throughout the globe.

Consequently, as the number of individuals mining bitcoin grows, so does the hashrate.

The hashrate-to-Bitcoin-price link is also precisely proportional. As more individuals purchase and sell Bitcoins in the network, more asset liquidity is needed.

As a result, mining creates more coins, and activity grows as more people buy and sell Bitcoin.

BTC total market cap at $737.87 billion on the daily chart | Source: TradingView.com

Bitcoin Hash Power Predictions

This year, cryptocurrency miners will diversify their income sources and business models.

According to Blockworks, the global hashrate will climb to 327 exahashes per second (EH/s) by the end of 2022, indicating a roughly 60% year-over-year increase.

It also said that by the end of 2023, the hashrate might exceed 587 EH/s.

BTCST Explained

The Bitcoin Standard Hashrate Token (BTCSHT) aims to increase liquidity in the Bitcoin mining market, allowing anyone to gain access to mining rewards and hash power of any size at a low cost.

It is also an asset protocol that allows Bitcoin hashrate assets to be used in decentralized finance. It provides a solid foundation for building particular DeFi trading, lending, and borrowing protocols.

BTC and BTCSHT Price Today

BTCSHT has a current value of $14.42, which is 0.48% lower than yesterday’s price point.

It also has correlating highs of $14.67 and lows of $14.00 regarding the current mining power and stability of Bitcoin.

Meanwhile, Bitcoin (BTC) is currently priced at $39,170, below the $40,000 mark but is still at its support level. It has a 24 hour high reaching $39,254 and lows of about $37,589, as per CoinDesk data.

Featured image from Bitcoin News, chart from TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.