As the price of Bitcoin continues to rebound this year, it seems that it has rekindled interest. The computing power of the Bitcoin network has also been rising, and is now close to the highest level in history.
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As of press time, data from Blockchain.com shows that bitcoin's computing power is about 48.00TH/s. However, on May 2, this figure reached 58TH/s, which means that the network computing power has increased by nearly 40% since the beginning of 2019, only about 6% from the highest point in history.
Bitcoin network computing power (source: Blockchain.com)
According to Blockchain.com, bitcoin's computing power reached 60.09TH/s on September 24, 2018, and then fell to 32TH/s on December 2, 2018.
The network hash rate (power) is necessarily related to the number of miners mining Bitcoin. More miners often lead to higher hash rates. The hash rate is directly related to the difficulty of the Bitcoin network. As more and more miners enter the network, the network will increase in difficulty. A drop in the hash rate means that the profitability of mining is declining, causing miners to shut down their mining machines or choose to dig other cryptocurrencies.
Based on current high levels of computing power, one might conclude that at least interest in bitcoin mining is rising in the industry. Mining is actually an investment in the future price of Bitcoin, and it shows that the industry is optimistic about the price of Bitcoin.
The correlation between bitcoin price and computing power
The price of BTC also has a certain correlation with the calculation power. After all, the price falls to a certain extent, and the miners cannot make a profit, and may even lose money. After Bitcoin fell sharply from the $6,000 region last year, miners began to leave the Bitcoin network in large numbers.
Chris Derose of the Counterparty Foundation said a few years ago that computing power may indicate the health of the network. Derose believes that:
“The computing power shows the enthusiasm of people investing in the network, at least to some extent.”