Bitcoin Hashrate Soars 15% Since Last Week As Analysts Expect Mining Problems To Increase

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

China began cracking down on cryptocurrency, banning financial institutions and payment companies from providing services related to cryptocurrency transactions.

China accounted for about 75% of the “average monthly hashrate share,” a term used to calculate the computing 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.

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On March 3, the difficulty fell 1.5 percent after six consecutive increases.

Bitcoin’s mining difficulty is currently around 27.55 trillion, and its processing power has increased since the last adjustment.

Bitcoin’s hashrate is up about 15% since the difficulty adjustment and 30% since hitting 169 EH/s two weeks ago.

The network’s processing power is currently around 218.11 EH/s, and it has managed to stay just above 200 EH/s for the past 10 days.

The relationship between hashrate and Bitcoin

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

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

Hashrate can reflect the number of individuals or organizations that are active in the mining process around the world.

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

The link hashrate-to-Bitcoin price is also exactly proportional. As more individuals buy and sell Bitcoins in the network, more liquidity of assets 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 revenue sources and business models.

According to Blockworks, the global hashrate will rise to 327 exahashes per second (EH/s) by the end of 2022, marking an increase of about 60% year-over-year.

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

BTCST explained

The Bitcoin Standard Hashrate Token (BTCSHT) aims to increase liquidity in the Bitcoin mining market so that anyone can access mining rewards and hash power of all sizes at 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 certain DeFi trading, lending and lending protocols.

BTC and BTCSHT price today

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

It also has correlated highs of $14.67 and lows of $14.00 regarding Bitcoin’s current mining power and stability.

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

Featured image from Bitcoin News, chart from TradingView.com

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