Itâ€™s Never Been Harder to Mine Bitcoin as Hash Rate Hits New Highs
Data from Glassnode strengthens the overall consensus that Bitcoinâ€™s hash rate, despite being hard to measure, is stronger than ever before.
The mean hash rate of the Bitcoin (BTC) network has hit new all-time highs to mark the cryptocurrency’s latest technical achievement, fresh data suggests.
Compiled by monitoring resource Glassnode, a new analysis of Bitcoin’s historical hash rate shows that on Jan. 7, the mean value reached 119 quintillion hashes per second — its best ever at the time.
Bitcoin hash rate (1-day moving average) versus price. Source: Glassnode
Consensus on BTC hash rate record
Hash rate refers to the amount of computing power miners are using to validate the Bitcoin blockchain. The more power, the more notionally secure the blockchain is. A large hash rate can also be taken as a statement of the attractiveness of mining for participants.
Glassnode’s reading derives from the one-day moving average hash rate calculation. While the hash rate is impossible to measure exactly, the data supports other estimates showing the metric hit new records in recent weeks and months.
Progress has been swift. According to Glassnode, the mean hash rate low of 36 quintillion hashes per second — which formed the basis for recent growth — occurred in late April 2019.
Difficulty set for another 6% surge
This year, meanwhile, Bitcoin has already exhibited multiple signs a bullish transformation is once again underway. Alongside hash rate, commentators have highlighted increased trading activity among Bitcoin futures investors.
Bitcoin mining difficulty. Source: Blockchain.com
Mining difficulty, which had previously been in decline, is now increasing. Last week, the metric progressed 6%, while another 6-7% is on the cards at the next adjustment in nine days’ time.
Anticipation has also been building around Bitcoin price action for the coming twelve months, with industry figures going on record to predict new all-time highs for BTC/USD before 2021.
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