Bitcoin Mining Hashrate Witnesses a Surge

Hashrate has been one of the prime concerns for the Bitcoin industry. In fact, in recent times, the crypto market has been facing a lot of difficulties. However, Bitcoin is recently experiencing a decreased mining difficulty. As a result of this, the hashrate has also seen a significant surge in the last couple of weeks.

A higher hashrate generally boosts the performance of the blockchain. This has increased the block production rate significantly. However, this very fact also suggests that a higher difficulty is waiting for the miners in the next adjustment. If you wish to know more about the topic, then this article is the right place for you to be.

Keep reading the document and discover more details of the recent trend in the Bitcoin market.

Mining Hashrate

Mining Hashrate 
Credit: CNBC

Those new to Bitcoin might wonder what this hashrate is all about. Well, the mining hashrate is the indicator of the collective amount of computing power connected to the Bitcoin network. It is a very important factor in the world of cryptocurrency. 

A higher value generally leads the blockchain to perform faster. Along with this, the security becomes stronger due to increased decentralization of individual machines. It also indicates the competition among miners. 

The Surge in Bitcoin Mining Hashrate

The Surge In Bitcoin Mining Hashrate
Credit: Barron’s

The latest weekly report from Arcane Research shows that, at present,  the mining difficulty has experienced the largest decrease in one year. This, in turn, has raised the hashrate significantly. The Bitcoin network always tries to maintain a stable “block production rate”. In easier terms, the Bitcoin network tries to keep the transactions per day constant.

But the fluctuation in hashrate hampers this aim of the network. For instance, a decreased rate of hashing transactions results in a decreased block rate. In such an uncalled-for situation, the blockchain reacts by decreasing the “mining difficulty” of the network. This is done to make it easier for the miners to solve their computing puzzles and bring up the hashrate nearer to the desired mark.

The recent chart from Arcane Research shows that the hashrate faced a downward trend until two weeks ago. To battle this downward trend, the network made three consecutive negative adjustments. The largest adjustment is the latest one. In fact, it is the largest adjustment in one year. Diminishing returns for the miners caused this downtrend.

However, as the difficulty has decreased greatly, this has seen a considerable surge. As a result, the block rate has risen well above the desired level. 

Concluding Lines

At present, the Bitcoin price is around $23.3k. Let us see what awaits the miners in the next adjustment.

Also read: A NY Times Article Gives Voice to Bitcoin Maximalists

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