Since the beginning of the year, the blockchain space had witnessed all sorts of different experiences. From Elon Musk influencing dogecoin, to several news of crypto scams, to Jack Dorsey developing his Bitcoin node, just like a movie, space has not been one without its own variant experiences. However, the latest news that has emanated is that Glassnode, in new research, has just discovered that the mean hash rate of the leading cryptocurrency Bitcoin has surpassed its previous records and is now at an all-time high.
The growth in the price of Bitcoin has boosted mining
In the details of the research carried out by the crypto data analytics firm last week, it was discovered that the rapid rise in the price of the digital asset had been a driving factor in the increase in the Hash rate. Bitcoin, which traded around $18,000 last November, has suffered in a dip in performance, but that has not stopped the largest cryptocurrency by market cap, as it currently trades around $39,000 as at the time of writing.
The cryptocurrency that outperformed the crypto community’s expectations last year had struggled somewhat in the late part of January but is starting to bounce back amongst a series of price fluctuations. The Bitcoin miners are propelled to put in more power and work into mining since their reward is with the token.
This has been a reason behind the increase in the Hash rate, as many miners are now motivated to work hard since they know they will be getting the digital asset as a reward for their labor. Another revenue generation angle for the mining business is transaction fees, increasing with the trading volume’s rapid growth rate.
Bitcoin mining hash rate had doubled in the last year
The mass institutional adoption of Bitcoin, which has been on the rise, has been a driving factor behind the cryptocurrency’s high trading volume. Institutional investments in the cryptocurrency have also driven prices high, coupled with a gross increase in the cryptocurrency market capitalization.
However, one cannot ignore its mining industry’s growth, whose average performance barely 12 months ago was less than 100 EH/s, with the new growth representing about 100% increase. However, the success of the Bitcoin mining industry still solely relies on the performance of the coin. The impact of the success of the mining industry is that it helps to discover new blocks.
It is worthy to note that an increase in hash rate, which equates to the mining industry’s success, will not necessarily represent the development or discovery of new blocks. With the push of Bitcoin late last year, analysts predict that the cryptocurrency might hit the $100,000 mark this year. Peradventure the digital asset ever get to that level, representing good news for its traders, regular investors, institutional investors, and even miners.