The post Bitcoin Hashrate Plunges 10% After Setting ATH, But Why? appeared on BitcoinEthereumNews.com.

Data shows the Bitcoin Mining Hashrate has plunged almost 10% since the recent all-time high (ATH). Here’s what could be behind this trend. Bitcoin Mining Hashrate Has Seen A Steep Drop Recently The “Mining Hashrate” is an indicator that keeps track of the total amount of computing power that the miners as a whole have connected to the Bitcoin network. The metric is measured in terms of hashes per second (H/s) or, more practically, in terahashes per second (TH/s). As BTC runs on a consensus mechanism based on the Proof-of-Work (PoW), miners naturally connect this computing power in order to solve mathematical puzzles and compete against each other to get a chance to add the next block to the network. The incentive for competing on the network in this way is that the miner who adds the next block receives the block reward, a combination of the transaction fees and block subsidy, as compensation. As such, for any miner, mining is only profitable if this reward outweighs the electricity cost that they spent on running their facilities. Whether miners as a whole are under stress or in a comfortable spot right now can be deduced by the trend in the Mining Hashrate. When the value of this indicator goes up, it means new miners are joining the network and/or old ones are expanding their facilities. Such a trend implies the blockchain is looking lucrative to these chain validators. On the other hand, the metric registering a decline suggests some of the miners are no longer finding BTC mining profitable, so they have decided to disconnect from the network. Now, here is a chart that shows the trend in the 7-day average Bitcoin Mining Hashrate over the past year: Looks like the 7-day value of the metric has plunged in recent…

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Filed under: News - @ September 17, 2024 1:24 am