Bitcoin reaches a new historical record in the hash rate and the difficulty of extracting the blocks skyrockets

Bitcoin reaches a new historical record in the hash rate and the difficulty of extracting the blocks skyrockets

By Roberto D. | CryptoFarm | 20 Jan 2020


It is now since last summer that the bitcoin hash rate has continued to rise, continuously marking new historical highs, I think this has been at least the fourth time in the last six months; as reported by cointelgraph in today's article, blockchain analysis companies demonstrate how the average hash rate of bitcoin has again reached a new historical high.

 We remind, for the benefit of less frequent users, that this value is only estimated, so it is not uncommon for different analysis companies to have a different hash rate value; on average, however, the computing power expressed by the network has done nothing but rise in recent months, helping to partially dispel the myth that the price follows the trend of the hash rate.

Even as BTC's price dropped, coming close to $ 6500, the computing power expressed by the network continued to rise.

Another factor must be considered, as we mentioned in an article a few weeks ago, which concerns Chinese mining.

At this time, in fact, mining in Sichuan (the Chinese region where much of the network's computing power is concentrated) is suspended due to the end of the rainy season which coincides with an increase in the cost of electricity; when the Sichuan mines reopen in spring, moreover close to the bitcoin halving (scheduled for next May), the global hash rate will literally skyrocket.

 

The concomitance of halving with the astronomical increase in computing power, therefore, could easily cause the value of bitcoin to skyrocket again, which, as reported by many analysts, could easily return to an altitude of 20/25 thousand dollars by the end of the year. 'year; if then, as many are ready to bet, the stock market should collapse during the first quarter of this year, the ideal conditions would arise to push the bitcoin price literally sky high.

Meanwhile, the prices are still holding well above $ 8,000, in a scenario that for some time, in our weekly analyzes, we had defined as markedly bullish.

Despite the widespread regulatory uncertainty globally and a renewed hatred of governments around the world against decentralized coins, therefore, bitcoin seems intent on causing yet another transfer of bile to detractors; in the meantime, the new anti-money laundering legislation is about to enter into force in the EU, which threatens to demolish the euro area crypto industry in the bud, however bitcoiners do not seem willing to be intimidated by government repression and show great optimism and confidence both for the present and for the future.


Roberto D.
Roberto D.

Born, and still living, in Italy. Passionate about cryptocurrencies since I discovered ethereum in 2016 https://linktr.ee/robertod


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