[2019-07-04] Bitcoin Hashrate Records Another All-time High Level

[jamaicanmango]

These days are quite interesting for the cryptocurrency industry, even if the prices aren’t necessarily heading where most people would like. That situation can always change without too many problems, but it remains to be seen how things will evolve. As far as the Bitcoin hashrate is concerned, it seems things are heading in the right direction.

ANOTHER BITCOIN HASHRATE SURGE

While the current price of Bitcoin is not necessarily making too many people too happy – compared to a few days ago – there is nothing to be overly concerned about either. It seems a status quo is being maintained, albeit there are still a lot of volatile price swings to take into account. The price alone doesn’t necessarily dictate what the future will hold for the world’s leading cryptocurrency.

Read More: https://themerkle.com/bitcoin-hashrate-records-another-all-time-high-level/

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[NeuroticFish]

I'm not sure if the price drives the hashrate or the other way around, I'm not even sure there's a relation between the two, although many will be happy to see this rise since they expect the price follow the same trend (although, as I wrote, there may not be any relation).
Anyway, this tells that many have invested in new hardware so I can hope they'll not sell cheap their coins.

It's somehow surprisingly late though, I've seen people expecting this kind of hash rate rise since.. last December?!

[elda34b]

It's somehow surprisingly late though, I've seen people expecting this kind of hash rate rise since.. last December?!

Seeing new hashrate high is cool. It means the network is getting stronger. If the hashrate is climbing higher, then it could mean more miners have joined the network or they've built another rig, which must mean that Bitcoin price is good enough for them to continue mining.

The relation between mining hashrate and Bitcoin price has been discussed by a lot of articles and lots of them more or less arrive at the same conclusion: there is a relation but it's small. Another fundamental like halving day affect the price more and the correlation is higher than price-hashrate.

[hatshepsut93]

I'm not sure if the price drives the hashrate or the other way around, I'm not even sure there's a relation between the two, although many will be happy to see this rise since they expect the price follow the same trend (although, as I wrote, there may not be any relation).
Anyway, this tells that many have invested in new hardware so I can hope they'll not sell cheap their coins.

It's somehow surprisingly late though, I've seen people expecting this kind of hash rate rise since.. last December?!

Of course there's relation between the two, mining profits are dependent on Bitcoin's price, because they get fixed amount of coins as block rewards (we'll ignore fees for now), so the hire the price, the more miners join the network to reap increased profits. Hashpower might slightly influence the price, but not enough to cause the growth we are experiencing now - it simply doesn't make sense for people to buy Bitcoin just because hashpower is growing - security has diminishing returns, and we only need enough of it to make attacks against Bitcoin unprofitable. 

[Sithara007]

During the past two-three weeks, the exchange rate of altcoins such as Bitcoin Cash, Bitcoin SV, Ethereum and Litecoin have fallen heavily against Bitcoin. So there is a real possibility that some of the miners could have shifted from mining altcoins to mining Bitcoin. If you check the BCH/BSV hash rate, they are either showing a stable difficulty or a declining trend.

[1Referee]

During the past two-three weeks, the exchange rate of altcoins such as Bitcoin Cash, Bitcoin SV, Ethereum and Litecoin have fallen heavily against Bitcoin. So there is a real possibility that some of the miners could have shifted from mining altcoins to mining Bitcoin.

BCash and BSV miners shifting, sure, but not Ethereum and Litecoin due to the difference in algorithm and hardware needed.

If you check the BCH/BSV hash rate, they are either showing a stable difficulty or a declining trend.

BSV has actually made a massive jump in the last 5 or so weeks. It went from 0.4Eh/s to 0.9-1.1Eh/s. BCash is the one lagging behind, but I'm pretty sure that Roger and Bitmain will organize a pump to bring the ratio back to 5%, which seems to be the ratio they are comfortable with. It takes time for them to accumulate enough BTC through mining to have enough to pump their shitcoin by 20-30%.

[Harlot]

Another positive news and its backing up the current orice action for Bitcoin. It may have lead to miners waking up and resuming their operations because they see the prices are sufficient enough to be profitable. Now that because we have an increase in mining we can then see that the level of difficulty will be increasing again hopefully it will be normalize when other miners will start mining again by that time.

[BitHodler]

It's somehow surprisingly late though, I've seen people expecting this kind of hash rate rise since.. last December?!

It doesn't matter what people expect-- the hashrate can't go higher than there being miners in circulation. The far majority of the miners in circulation in 2018 were purchased in 2017 due to the bull run.

The correction that we went through last year made investors stop buying new miners, therefore the hashrate wouldn't go up more than what it already was. The market looked like a complete mess.

This year the market looks extremely healthy, and this is what investors want to see in order to buy miners. This is why we keep hitting higher hashrate highs pretty much on a weekly basis now.

[carlfebz2]

It's somehow surprisingly late though, I've seen people expecting this kind of hash rate rise since.. last December?!

It doesn't matter what people expect-- the hashrate can't go higher than there being miners in circulation. The far majority of the miners in circulation in 2018 were purchased in 2017 due to the bull run.

The correction that we went through last year made investors stop buying new miners, therefore the hashrate wouldn't go up more than what it already was. The market looked like a complete mess.

This year the market looks extremely healthy, and this is what investors want to see in order to buy miners. This is why we keep hitting higher hashrate highs pretty much on a weekly basis now.

Actually a normal thing to be done for a certain investor or simply a miner.Why would mine if the market is completely mess up?Normally you would really react and completely stop
on mining and come back when you do saw if the market had recovered or in good shape.This time we are seeing that they are coming back neither the old miner or the new ones
considering on mining now.

[bbc.reporter]

It was only 8 months ago that the mainstream news media and bitcoin news media were in excitement in creating articles of the bitcoin death spiral. Look at what these corrupt and incompetent fools are making us read now.

[NeuroticFish]

It doesn't matter what people expect-- the hashrate can't go higher than there being miners in circulation. The far majority of the miners in circulation in 2018 were purchased in 2017 due to the bull run.

I am not a miner and I don't know that well the news in the realm of Bitcoin ASIC miners, but I've done some research and I've found one of the posts I was referring to. I placed it to the end of this post.
As you can see the post is from last December and it talks about people switching to a new generation of ASICs "in a week".

the final difficulty adjustment of 2018 just happened. and so now we are in the realm of mining pools knowing the next difficulty jump WILL be affected by the delivery of next gen asics getting delivered in a week to thousands of people.
pushing up hashrate. pushing up costs. and therefore making many prefer to buy coin as a cheaper option, sparking a price rise

[Kakmakr]

Miners always follow the money train and with the increase in the Bitcoin price, a lot of the Alt coin miners could have shifted some hashing power to mine Bitcoin. They would see a much better return on their investment, if the Bitcoin bullrun starts in the future. The Alt coin price did not increase as much as the Bitcoin price, so they focus on the coin with the highest probability for profit. 

The more miners shifting hashing power to the Bitcoin Blockchain = a increase in the difficulty. So things will return to normal, when more miners abandon Bitcoin mining because of the increased difficulty. 

[gentlemand]

It was only 8 months ago that the mainstream news media and bitcoin news media were in excitement in creating articles of the bitcoin death spiral. Look at what these corrupt and incompetent fools are making us read now.

The 'death spiral' is one of the favourite hooks rolled out by - no mark posters, poorly informed or disingenuous banking types and plenty of 'researchers' too. I'd love to know why the concept of difficulty adjustment induces such a giant blind spot. I guess it's because it instantly nullifies one's scare tactics.

[bbc.reporter]

@gentlemand. Why? To get more clicks hehe. The incompetent and corrupt media news sites sensationalize the news and skew the facts to make more money. The days of real investigative journalism are almost gone, I reckon. Everything these days are fake news and clickbaits.

[BitHodler]

The 'death spiral' is one of the favourite hooks rolled out by - no mark posters, poorly informed or disingenuous banking types and plenty of 'researchers' too. I'd love to know why the concept of difficulty adjustment induces such a giant blind spot. I guess it's because it instantly nullifies one's scare tactics.

The mass media is designed to target average joes who will not do their own research, which shouldn't come as a surprise. They know exactly how to scare off these joes and won't shy away from playing it dirty.

It's the same with certain countries in the middle east where there are some problems. Instead of pointing at how local the problems actually are, they scare off people by saying that the whole country is going through a war.

In a way it's all market manipulation through proxies. People need to step up and do their own research for once. As Trump likes to say, FAKE NEWS. The mass is such an easy to convince bunch of sheeps....

[Sithara007]

During the past two-three weeks, the exchange rate of altcoins such as Bitcoin Cash, Bitcoin SV, Ethereum and Litecoin have fallen heavily against Bitcoin. So there is a real possibility that some of the miners could have shifted from mining altcoins to mining Bitcoin.

BCash and BSV miners shifting, sure, but not Ethereum and Litecoin due to the difference in algorithm and hardware needed.

If you check the BCH/BSV hash rate, they are either showing a stable difficulty or a declining trend.

BSV has actually made a massive jump in the last 5 or so weeks. It went from 0.4Eh/s to 0.9-1.1Eh/s. BCash is the one lagging behind, but I'm pretty sure that Roger and Bitmain will organize a pump to bring the ratio back to 5%, which seems to be the ratio they are comfortable with. It takes time for them to accumulate enough BTC through mining to have enough to pump their shitcoin by 20-30%.

During the last 4 weeks, the BSV mining difficulty has fallen by more than 35% (from 210 G to 135 G). But you are right, prior to that there was a sharp jump in the difficulty. But these figures look abysmal, when we consider the difficulty BSV had at the time of its creation (somewhere around 600 G). The reduction has been in the range of 4-5x.