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Hodlonaut — aka Magnus Granath — requested the Bitcoin group the place the flood of further hash fee was coming from expressing concern on the latest spike.
Granath stated he discovered the tempo at which the hash fee is climbing “A bit of scary.”
Bitcoin hash fee information a brand new all-time excessive
The hash fee refers to a measure of the community’s processing energy. A rising hash fee signifies that the variety of miners is rising and/or mining tools hashing output/effectivity is up.
There may be an ongoing debate on how hash fee and value are correlated. Some say the hash fee strikes first — main to cost adjustments. Others argue that value adjustments drive motion within the hash fee.
Nonetheless, an rising hash fee is usually thought-about a optimistic improvement from a safety perspective. It is because finishing up a 51% assault on the Bitcoin community turns into costlier. Moreover, it additionally alerts miners’ confidence.
Information from ycharts.com reveals the Bitcoin hash fee reached 335 TH/s on March 26. Zooming in reveals an all-time excessive of 398 TH/s was reached on March 23.
At its peak, year-to-date positive factors amounted to 43%. Moreover, for the reason that Terra ecosystem implosion, in Might 2022, the Bitcoin hash fee has risen by 110%.
Group floats numerous theories
Seb Gouspillou — the CEO of mining agency BigBlock DC Bitcoin — defined the phenomenon as miners upgrading outdated machines to newer, extra environment friendly tools. He additionally stated, “there are new farms, too, all over the place!”
“There’s nothing particular. Previous farms who’re changing their previous asics with new ones. The power enchancment (from S9 to S19) is an element of three.3.“
Magnus commented that this looks like a legitimate rationalization. However questioned whether or not this alone is adequate to account for the “unprecedented” “rip.”
In response, Gouspillou stated his agency upgraded from 2.5 EH/s machine to 17 EH/s rated ones in 2018. And whereas the “rip” is spectacular, he thinks it aligns with expectations round companies upgrading their tools.
One other consumer attributed the problem to the influence of Ordinals and extra miners becoming a member of the community to earn charges on the mania.
Analysis Analyst at River Monetary Sam Wouters stated latest Bitcoin value will increase had inspired miners to show beforehand sidelined machines again on.
A number of others theorized that unknown nation-states are stepping into Bitcoin mining.
