This is good news for us! I know quite a lot of investors do not really care that much about the bitcoin hashrate. Heck, it is not even on their radar. But if you were to look up at past history of the bitcoin hashrate, you would realize that hashrate is indeed very important. Miners (as in those people involved in mining Bitcoin) are always the ones who extremely sensitive to market sentiments when it comes to the cryto markets. It is their business to understand what is happening to the market. If the outlook for the particular cryptocurrency is positive, miners will tend to want to mine that cryptocurrency. It just makes sense. Why would you want to lose out when they are better and more profit-making cryptocurrency out there right? So if we are seeing Bitcoin hashrate going up, it means the outlook for Bitcoin is positive. And a high hashrate means better security for the Bitcoin network as well.
Of course the downturn just a few months ago were the result of several unfortunate events. One of them was the China ban in crypto mining. This has lead to the exodus of miners from China to various other countries. If I remember correctly, at one point in time the hashrate by Chinese miners comprise of over 70% of the worldwide hashrate. That is huge. Of course China’s dominance in hashrate had been flattering since then. As of June 2021, they only make up half as miners understood that the Chinese govt is not in favour of mining. For better or for worse, Hashshiny seems to have migrated to Kazakhstan and Burma. I myself have invested a little into Hashshiny in the hopes that mining will take off. Honestly, it is slow but at the very least it is steady. I do see some returns coming. But of course I am not telling my readers to go and buy hashrates from these resellers. In fact, I don’t think it is a good idea, especially most of the plans are at least 2 years. Who knows what will happen to mining in 2 years time? I am not saying that I think Bitcoin or Ethereum will collapse in 2 years time, but most specifically what will happen to mining for Bitcoin or Ethereum. Also note that when ETH 2.0 starts, it will transition to Proof of Stake. That means no more Proof of Work and what will happen to my investment for Ethereum in these hashrate companies? I have absolutely no idea.
The hashrate for Bitcoin has been rising since late June. And it does not seem to be slowing down anytime soon. Again this is good news for Bitcoin holders. Hopefully the hashrate will rise to the same level in May/June 2021 just before the crash. But once again, you should always do your own research. Just because historically it has been positive, does not mean that it will be the same in the future. But for me, I am bullish for Bitcoin at the moment. You can check out my post about my thoughts on Bitcoin.
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[…] positive news coming out of the crypto sphere and this will definitely push the markets higher. The Bitcoin hashrate is still going up. This is a very good sign. A good number of crypto projects are finally matured […]