Bitcoin Hash Rate Spikes to New High (Again): Boding Well for Market - OhNo WTF Crypto

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Bitcoin Hash Rate Spikes to New High (Again): Boding Well for Market

January 20, 2020 , ,
#OhNoCrypto

While your Bitcoin transactions likely go through seamlessly with a few clicks of a screen, there is a whole industrial complex behind the action of sending BTC across the world and the internet.

Every second of every day, there are tens of thousands of computers, built specifically for cryptocurrency, making computational solutions in hopes of solving a block in an effective lottery.

What’s interesting is that while Bitcoin is still a ways from its all-time high price of $20,000, more and more capital has been invested in keeping the network secure, boding well for the future of the cryptocurrency.

Bitcoin Hash Rate Hits Fresh High

As noted by Bitcoin proponent Hodloanut, data from Bitinfo Charts shows that Bitcoin’s hash rate — the measure of how much computational power is being used to process blocks — has just hit 126.13 exahashes per second, which is nearly 1,000% higher than the metric was at when BTC was trading at $20,000 in December 2017.

To help readers rationalize the extent of the security of the Bitcoin network, Hodloanut issued another tweet, noting that with 126 exahashes, there are 126 billion billions of SHA-256 hashes being computed every second to help secure transactions and help create a cohesive blockchain. He said that this simple mind-blowing number is a sign that Bitcoin’s fundamentals are sound.

The surging hash rate confirms that the so-called “miner capitulation” — when Bitcoin and other cryptocurrency miners stop their operations due to operating expenses being unsustainable — is over.

Previous conclusions to bouts of miner capitulation have historically marked macro bottoms in the Bitcoin market and preceded bull rallies that had an average 5,000% gain, according to an analysis by digital asset manager Charles Edwards.

Likely To Only Grow Further

There is a high likelihood that this metric won’t stop appreciating any time soon.

Per previous reports from Blockonomi,  SBI Holdings — a financial services company group based in Tokyo, Japan that works closely with crypto-centric fintech upstart Ripple — and GMO Internet, an internet service provider that has been mining cryptocurrency for multiple quarters now, will begin mining operations in a massive farm in Texas.

The farm will have a mining capacity of 1 gigawatt by the end of 2020, purportedly three times larger than that of Bitmain’s Rockdale mine, which currently holds the title for the world’s largest crypto mine.

Not Only Strong Fundamental Trend

This isn’t the only fundamental trend that has investors bullish on Bitcoin.

The past few years have seen institutions start to dabble in the cryptocurrency investment arena.

The upcoming year is expected to be huge for institutional involvement. Changpeng “CZ” Zhao said at the end of last year that he expects for 2020 to see more institutions enter Bitcoin investment, resulting in a “more bullish market.”

Indeed, Fidelity Investments — one of the world’s largest finance companies — recently rolled out its Bitcoin custody and trade execution services, giving trillions of dollars owned by tens of thousands of institutional clients a chance to enter cryptocurrency.

Not to mention, there are a number of other institutional-centric initiatives, such as ING’s custody solution and Bakkt’s derivatives exchange, that are slated to see growth in the coming years, boding well for the market and the adoption of digital assets across the board.

The post Bitcoin Hash Rate Spikes to New High (Again): Boding Well for Market appeared first on Blockonomi.



OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nick Chong, @Khareem Sudlow