HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Bitcoin’s Hash Rate Hits New Highs, Leading to Imminent +11% Difficulty Adjustment

Mining 2020/09/16 04:00 by Cole Petersen

Bitcoin’s recent price turbulence has not been emblematic of its underlying strength, as the cryptocurrency’s hash rate has been plowing higher throughout the past several weeks and months, just setting another fresh all-time high.

This metric’s growth signals that demand for the Bitcoin network is incredibly high at the moment, despite many of the cryptocurrency’s detractors stating that it is being overshadowed by Ethereum.

It is true that Ethereum has seen a spike in blockspace demand like never before, but this has come about due to the inflows of users that need to use ETH to transact on decentralized exchanges.

Bitcoin, on the other hand, appears to be seeing more organic usage, which also comes as more transaction begin taking place outside of exchanges. This may come from peer-to-peer transactions, or even over-the-counter deals taking place between large buyers.

The rising demand for the Bitcoin network is what has caused its hash rate to surge. This, in turn, is leading to an imminent +11% difficulty adjustment that is slated to take place this coming weekend.

Bitcoin Transactions are Rapidly Moving Off of Exchanges

As NewsBTC reported last week, transaction data shows that users are beginning to transact with BTC at a rapid rate off of exchanges.

This means that the network is being used more widely by users, with its utility stretching beyond just being used by speculative investors who buy BTC on an exchange and let it sit there until they sell it.

As cited within the report, Glassnode spoke about this trend in a recent tweet, explaining that exchange fee dominance shows the declining role they are playing within the ecosystem.

“On-chain Exchange Fee Dominance shows the major role that centralized exchanges play in the Bitcoin ecosystem. 20% of all miner fees are currently used for BTC txs involving exchange activity. In 2018 after BTC peaked, this number was as high as 41%.”

Bitcoin

Image Courtesy of Glassnode.

BTC to Undergo Imminent Difficulty Adjustment 

As Bitcoin’s hash rate reaches new highs, the blockchain is now about to undergo the second largest positive difficulty adjustment seen in 2020.

Glassnode also spoke about this in a recent tweet, referencing a chart showing the parabolic growth that BTC’s hash rate has seen.

“Regardless of short-term $BTC price movements, Bitcoin’s hash rate continues to climb – and to hit new ATHs. At the current rate, miner difficulty is estimated to increase by 11% this Sunday – the second largest positive adjustment in 2020.”

Image Courtesy of Glassnode.

This metric may not have any direct impact on the cryptocurrency’s price action in the near-term, but it does bode well for the asset’s fundamental outlook.

Featured image from Unsplash.

0 Like(s)



You should also read...

Mining 20/03/20 07:22 by Brenda Ngari
Does Bitcoin’s Dipping Hash Rate Spell Doom For The Prices?
The past week has been pretty rough for investors as bitcoin price tumbled below $4,000 along with the traditional stock market. Fortunately, bitcoin has since decoupled from the S&P 500 and rall...
Read More
Bitcoin 10/04/20 01:00 by Cole Petersen
Large Players are in Full Bitcoin Accumulation Mode as On-Chain Activity Grows
Bitcoin has seen some notable fundamental growth throughout the past week – according to on-chain data – which appears to have come about in tandem with the benchmark cryptocurrency’s climb into...
Read More
Mining 06/05/20 01:00 by Cole Petersen
Bitcoin Miners Move to Protect Their Profitability as Halving Looms
Bitcoin’s long-awaited mining rewards halving is now only a mere six days away, and investors are on the edge of their seats as they wait to see what implications this may have on Bitcoin’s price ...
Read More
Bitcoin 15/07/20 17:38 by Vincent Mislos
More Darknet Entities Are Making Use Of Bitcoin Mixers, Study Finds
Everyone in the world can use Bitcoin, which means it is available for legitimate purposes and to those with malicious and criminal intent. The study by analytics firm Crystal Blockchain has revealed...
Read More
Mining 16/09/20 00:57 by Olivia Brooke
Mining difficulty to intensify immensely as Bitcoin’s hashrate hits new all-time high
There has been a widespread usage on the Bitcoin network over the past weeks. This is as a result of the investment influx and trading interest, all of which have played a role in Bitcoin’s cur...
Read More