Bitcoin hashrate ATH promising for BTC’s long term price trend

The hashrate of the Bitcoin network, which demonstrates the amount of computing power used to secure the protocol to process transactions, achieved a new all-time high at 83 exahashes.

At the start of the year, the hashrate of the Bitcoin network was hovering at 35 exahashes, showing a 137 percent increase within an eight-month span.

What the hashrate says about Bitcoin’s trend

In mid-2020, the Bitcoin blockchain network is expected to go to through a mechanism called a block reward halving, which would reduce the revenues received by BTC miners by 50 percent.

The halving would substantially decrease the amount of BTC mined by miners. These coins are passed on to the market through exchanges and over-the-counter (OTC) operations, putting downward pressure on the price of BTC. Historically, the block reward halving of the Bitcoin network acted as a fundamental catalyst for the medium to long term price trend of the coin by decreasing the rate of BTC emission (and thus decreasing supply inflation).

Something to note, however, is that the halving also tends to reduce the overall hashrate of a proof-of-work network, in line with lower miner revenues. This may make BTC less secure to 51% attack. Read More at CryptoSlate...

#BTC #Mining