Bitcoin hit a new high amid price volatility

[TheGhostMan]

The recent increase in the hash rate of the BTC network signifies the growing number of miners on the blockchain. The hash rate of the bitcoin network has grown more than 400% since the Chinese crypto mining ban last year, when it fell below 70 EH/s.

For those who don't know this, hash rate refers to the total combined computing power, which cryptocurrency miners use to issue new bitcoins and make new transactions. Basically, the higher the hash rate, the more secure the network, since more computation intensity is needed to attack it.

In my opinion, Bitcoin has withstood many tests and different regulatory attacks. The rise in mining difficulty and network hash rate also comes at a time when there is significant momentum for Bitcoin. With gaining much more fame, clean mining has become a priority for various mining companies.
Information extracted from: https://coin3.net/es/la-tasa-de-hash-de-la-red-de-bitcoin-alcanzo-un-nuevo-record-en-medio-de-la-volatilidad-de-los-precios/

[1715063428]

1715063428

[1715063428]

1715063428

[1715063428]

1715063428

[1715063428]

1715063428

[NeuroticFish]

While "Bitcoin hit a new high amid price volatility" may be misleading, the fact the hash rate went ATH again is interesting, especially since there's energy crisis in some areas (hence probably increased prices for electricity here and there), semiconductors shortage (hence I expect somewhat smaller production of miners) and political drama (omg bitcoin consumes this and that and it's not even green!)

Thanks for the nice news. I have hopes the price will also get (sooner or later) follow better this trend.

[Upgrade00]

Basically, the higher the hash rate, the more secure the network, since more computation intensity is needed to attack it.

Higher hashrate does mean more network security, and it would be far more expensive to attempt to centralize the network and obtain 51% computing power and try to hijack the network.

Does anyone by any chance have a chart or graph which shows how mining power is distributed globally since the Chinese ban?

[hugeblack]

All of these factors are economic. As long as mining is profitable, the hash-rate rate will continue to rise.
Many people are still betting on an increase in the price. Also, do not forget that now mining companies have included those companies that are not looking for a temporary profit, but will continue to work for a while even if mining is not profitable.

I think we will see an increase in the hash rate and it will continue.

[Jating]

Yeah, I followed the news regarding the hash rate for sometime during the China ban and the problem is Kazakhs before. So it's good to see that the numbers are back and could be a good indication that we might be somewhat in stable form not at least. But if this will translate to a bitcoin rally? We will have to see, this is all business now and this miners will have to generate enough money to survived in their mining business. Might just be a few jumps here and there, but I don't expect a rally though or even a new all time high.

[Welsh]

While "Bitcoin hit a new high amid price volatility" may be misleading, the fact the hash rate went ATH again is interesting, especially since there's energy crisis in some areas (hence probably increased prices for electricity here and there), semiconductors shortage (hence I expect somewhat smaller production of miners) and political drama (omg bitcoin consumes this and that and it's not even green!)

Thanks for the nice news. I have hopes the price will also get (sooner or later) follow better this trend.

The great thing about this is despite the ongoing political drama that you mention, especially with the energy claims as of recent, Bitcoin once again proves in the long run it's resistant to this sort of ongoings, which bodes well for the future, and especially the price.

Honestly, if anything if would be the perception of the public with energy consumption I'd say is one of the biggest threats to Bitcoin, especially with how the world is going towards the greener the better sort of mentality. So, while I don't think we've escaped the problems, at least from a Bitcoin users perspective we haven't lost faith, evidenced by the increase in hash rate.

[DapanasFruit]

I am beginning to see the importance of hash rate for the security and stability of the Bitcoin network and at the same time can be a big vote of confidence for Bitcoin coming from growing number of miners who are participating in the said economic activity...as people are saying: the more, the merrier, the better. Now, I am expecting that soon we can hear another good news and it would have something to do with its price...am actually looking forward that in the month of May Bitcoin can reach at least $50K as I read somewhere that today BTC seems to be bottoming out of the quagmire it is in.

[btc_angela]

I am beginning to see the importance of hash rate for the security and stability of the Bitcoin network and at the same time can be a big vote of confidence for Bitcoin coming from growing number of miners who are participating in the said economic activity...as people are saying: the more, the merrier, the better. Now, I am expecting that soon we can hear another good news and it would have something to do with its price...am actually looking forward that in the month of May Bitcoin can reach at least $50K as I read somewhere that today BTC seems to be bottoming out of the quagmire it is in.

Fundamentally? Yes, this is a good indication, it just shows how stable bitcoin is. Might be good to see as well which country has taken the lead as far as bitcoin mining goes specially after the China ban.

Nevertheless, the 'clean and green' slogan seems to be on the move this year. Specially how the scientist 3 weeks ago points out that we need to limit global warming. And bitcoin mining could be a public target for groups pushing for 'clean and green' agenda all over the world.

[Don Pedro Dinero]

Ah, thank goodness. I saw the title, thought it referred to the price and deduced (wrongly) that it was a shitpost.

While "Bitcoin hit a new high amid price volatility" may be misleading, the fact the hash rate went ATH again is interesting,

I agree.

Higher hashrate does mean more network security, and it would be far more expensive to attempt to centralize the network and obtain 51% computing power and try to hijack the network.

Yes, good news, and as others have said, hopefully this will have an influence on the price, but increased security is key.

[StarKay]

This new hash rate high is a very encouraging news to every bitcoin lover because it shows that either more investors are going into mining Bitcoin or the existing investors are expanding their mining operations.

This also shows the level of optimism that the investors have in the future of Bitcoin and also the price to support their mining operations.

Clean mining operations should continue to be a top priority for miners so as to address environmental concerns and make mining Bitcoin more appealing to everyone.

[fortuner]

I am beginning to see the importance of hash rate for the security and stability of the Bitcoin network and at the same time can be a big vote of confidence for Bitcoin coming from growing number of miners who are participating in the said economic activity...as people are saying: the more, the merrier, the better. Now, I am expecting that soon we can hear another good news and it would have something to do with its price...am actually looking forward that in the month of May Bitcoin can reach at least $50K as I read somewhere that today BTC seems to be bottoming out of the quagmire it is in.

If you look at the current bitcoin price, I also think that bitcoin is able to bounce back to the price of $50k but maybe at the end of the month of May.
Because at this time bitcoin continues to make price corrections which sometimes drop drastically and sometimes also make the Zigzag line high.

[Oshosondy]

Thanks for the nice news. I have hopes the price will also get (sooner or later) follow better this trend.

The price is not having correlation with the mining hashrates this year, the fall of bitcoin price in the past significantly can make mining hashrates to reduce, but as the price has fallen this year, bitcoin is achieving increasing hashrates. This is caused by one thing, the miners may not see high profit now but having the mindset that the price of bitcoin will still increase and reach ATH in a way they will have more profit. But Bitcoin price is still good because miners too are selling, if they do not make profit, the hashrate supposed to have reduced as some would have quit mining.

If you look at the current bitcoin price, I also think that bitcoin is able to bounce back to the price of $50k but maybe at the end of the month of May.
Because at this time bitcoin continues to make price corrections which sometimes drop drastically and sometimes also make the Zigzag line high.

I can only advice you to have long term investment plan, do not be surprised if bitcoin price has not gone so high as expected in just a month, I am not saying it can not go high as that but the time involved is short and can not be used to make good speculation about bitcoin price.

[franky1]

with the china event bringing it down to 70.. a 400% would be 280exa..
.. um not quite yet has that happened.. (its 325%, so topic creator is a bit over emphasising things)

also comparing the mining cost of last year (around the china event) where asics were a different generation thus different cost.
this years generation(efficiency) means that the current new ATH hashrate is not going to present as a massive opportunity for a new ATH price.
infact the window of value is still around the same $30k-$70k for mining, thus the price window of support and resistance remains about the same

those lucky enough to mine the cheapest mining costs wont sell for less thus market prices support a market 'bottom' of that support.
everyone on the planet can mine for less then the high mining cost window. so no one will buy if they can get coin cheaper by mining, thus showing a resistance to go above a certain price on the market.

this value window is the same now as last year. so lets not exaggerate possibilities of new ATH prices when all logic and statistics still dont show such opportunity... .. YET

[NeuroticFish]

Yes, good news, and as others have said, hopefully this will have an influence on the price, but increased security is key.

Well, Bitcoin security looks very good for some years now, no risk at all there; the only "problem" is that miners pay more and more for every satoshi they receive as rewards.

Thanks for the nice news. I have hopes the price will also get (sooner or later) follow better this trend.

The price is not having correlation with the mining hashrates this year, the fall of bitcoin price in the past significantly can make mining hashrates to reduce, but as the price has fallen this year, bitcoin is achieving increasing hashrates. This is caused by one thing, the miners may not see high profit now but having the mindset that the price of bitcoin will still increase and reach ATH in a way they will have more profit. But Bitcoin price is still good because miners too are selling, if they do not make profit, the hashrate supposed to have reduced as some would have quit mining.

Miners can't sell at a loss. Or at least not for long. Yes, they may be still selling, it may mean that they're still on profit, but with every Ehash/s up, that profit is smaller. And that's going on for quite a while, hence I expect sooner or later they'll stop selling and forcing the price go up (and if that doesn't work out, unplug the gears, at least temporarily).
That's why I said "sooner or later". I don't expect this happen overnight, but we're going in that direction.

[sunsilk]

In my opinion, Bitcoin has withstood many tests and different regulatory attacks.

I agree.

People don't see this fact about bitcoin rather they only look at the roller coaster ride of bitcoin. But checking out how secure the network is and the hash rate difficulty goes higher, is one big sign to us who are believing in the long term status of bitcoin.

Along with the better security that we're seeing. This comes also with the price for which we're also looking at but people should also seeing some information like this.

[philipma1957]

with the china event bringing it down to 70.. a 400% would be 280exa..
.. um not quite yet has that happened.. (its 325%, so topic creator is a bit over emphasising things)

also comparing the mining cost of last year (around the china event) where asics were a different generation thus different cost.
this years generation(efficiency) means that the current new ATH hashrate is not going to present as a massive opportunity for a new ATH price.
infact the window of value is still around the same $30k-$70k for mining, thus the price window of support and resistance remains about the same

those lucky enough to mine the cheapest mining costs wont sell for less thus market prices support a market 'bottom' of that support.
everyone on the planet can mine for less then the high mining cost window. so no one will buy if they can get coin cheaper by mining, thus showing a resistance to go above a certain price on the market.

this value window is the same now as last year. so lets not exaggerate possibilities of new ATH prices when all logic and statistics still dont show such opportunity... .. YET

. Nice post

To all when BTC unwound fro 20k in dec of 2017 to 6 k in 2018 hashrate increased more than 3x

look at price from dec 2017 to late 2018


look at hash from 2017 to oct 2018





so hash went from 12 to 53  as price dropped from 20 to 6.

So are we simply repeating the big hash build up of 2018 if so we have 2x the rate to go as btc unwinds out of the 30-70 slot it has been in since dec 2020.

Personally it may not happen as power may get costly. and we may not go to 600eh by years end.  time will tell

[Zilon]

Increase in hash rate is directly proportional to increase in miners and also an indication of network security as more miners are verifying transaction making the authenticity of every transaction entered into the Blockchain more secure and temper proof.

Bitcoin momentum is a function of many activities Bitcoin has been able to uphold over time. The rise in mining difficult didn't just maintain Bitcoin momentum but also increase Bitcoin supply as miners rewards decreases

[Welsh]

Increase in hash rate is directly proportional to increase in miners and also an indication of network security as more miners are verifying transaction making the authenticity of every transaction entered into the Blockchain more secure and temper proof.

Depends what your definition of a miner is, if its based on hardware sure. If it's the person/organisation behind that miner then it might not be directly indicative of more people entering the market, since a lot of existing miners will be looking to scale their operations, and earn the maximum amount possible.

While technically it does increase the amount verifying transactions, to a certain point it doesn't really improve it all that much. Unless, as you say there's new people entering the market, as that at least reduces the amount of centralisation. Mining being probably one of the more centralised parts of Bitcoin.

[philipma1957]

Increase in hash rate is directly proportional to increase in miners and also an indication of network security as more miners are verifying transaction making the authenticity of every transaction entered into the Blockchain more secure and temper proof.

Bitcoin momentum is a function of many activities Bitcoin has been able to uphold over time. The rise in mining difficult didn't just maintain Bitcoin momentum but also increase Bitcoin supply as miners rewards decreases

 I mine so I like this pattern but I know I am established. I know my limits and what I can get the team to.

Our big group may 2x its hash this year.

Time will tell.  Oh we are still under 1 mill in gear but we were at 4 s9's in dec 2018

so expansion has happened a lot in under 4 years for us.

We found some other possible locations one could be really good for us as he has 31 properties at least a dozen could go solar and mine for "free".

At Welsh

as we expand we look for clients that fit our model.

the new client we are starting with will do 4000 foot office roof with solar that will support 7kwatts 24/7/365

seems small but he has 31 properties and 12 could be good. He has a need to create passive income for someone. So if it works maybe we do a total of 100kwatts of 24/7/365 power for him that is about 600kwatts of arrays. use a factor of 6 to get your 24/7/365 power delivered.

[Doan9269]

In my opinion, Bitcoin has withstood many tests and different regulatory attacks. The rise in mining difficulty and network hash rate also comes at a time when there is significant momentum for Bitcoin.

We can say to an extent all the factors listed above also in one way or the other contribute to the volatility in bitcoin price, especially the government regulation while the hash rate is the major determinant to the supply of bitcoin and this miners could easily find a great challenge in dealing with the government over power supply, regulation and tax payment, but the most interesting aspect of these is that despite the continuing challenges bitcoin never go by inflation neither does it value and acceptability decreased, i see it breaking forth above $40k before the end of  nextweek hopefully or sooner.