BTC's computing power reproduces the bull market, soaring 40% during the year, is it…
During the May Day holiday, Bitcoin’s “spring breeze” broke through $5,800, a new high for the year. As the price increases, the bitcoin computing power (hash rate) has also been rising, and is now close to the peak power of the bull market last year.
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Blockchain.com data shows that bitcoin computing power reached 58 million TH/s on May 2, which means that bitcoin computing has soared nearly 40% since this year, a new high since October 2018, and distance history The highest point is only about 6% of the gap.
Bitcoin computing power reached 60.08 million TH/s on September 24, 2018, but fell to 31.99 million TH/s on December 2 of the same year.
The power (also known as the hash rate) is a measure of the processing power of the Bitcoin network. That is, the speed at which the computer (CPU) calculates the output of the hash function. Bitcoin networks must perform intensive mathematical and encryption related operations for security purposes. For example, when the network reaches a hash rate of 10Th/s, it means that it can perform 10 trillion calculations per second.
In addition to computing power, the number of confirmed transactions in the Bitcoin network reached 450,000 on May 2, setting a new 15-month high. The last bitcoin confirmation transaction peaked in December 2017, when the number of transactions was close to 500,000.
What does the increase in bitcoin computing mean?
The dramatic increase in bitcoin computing means that the difficulty of mining increases (as shown below), and on the other hand it means an increase in mining interest.
According to Crypto Potato, the more miners, the higher the power. On the contrary, the decline in computing power also means that the profitability of the mine will decline, and there will be a phenomenon that the mining machine is slow-moving and the mine is shut down. Recently, with the recovery of bitcoin computing power, miners' interest in mining is gradually increasing.
In addition, there is a certain correlation between the computing power and the price of Bitcoin. From the end of 2018 to the beginning of 2019, the price of bitcoin has fallen below the threshold of 6000, 5000 and 4,000 US dollars.
At that time, Bitcoin’s computing power also experienced a cliff-like decline, and it remained in a state of low volatility from the end of 2018 to the beginning of 2019.
This shows that there is a positive correlation between bitcoin power and price. If the current bitcoin power can maintain its current high or continue to climb, the price of Bitcoin is expected to rise further.
Although the Tether-Bitfinex crisis triggered a brief decline in Bitcoin, the market value of Bitcoin exceeded $100 billion, which also led to an increase in the entire cryptocurrency market. After Bitcoin broke through the $5,800 mark, the next resistance level was the $6,000 line.
Author: Long Yue, please indicate the source
Source: Shallot blockchain