Since Bitcoin miners plan to get as much BTC as possible before the block reward is halved in May, the current hashrate of Bitcoin's entire network has been significantly improved.
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Mining is driven by profits
It is not surprising that Bitcoin's sharp decline last month led to an equally significant decline in the mining industry. Old, inefficient miners will become unprofitable and can only be shut down. At present, as the price of Bitcoin rebounds, miners are restarting.
At present, rich economic incentives are pushing some old mining machines back into use. Despite temporary fluctuations, the bitcoin price has risen by about 40% since mid-March. However, the computing power of the entire network has only increased by 12.5%. Therefore, it is not surprising that miners took advantage of this opportunity to make more profits.
Analysts also noticed the improvement of Bitcoin's computing power. The increase in computing power reflects the increasing interest in Bitcoin investment and adoption. Analyst Plan B tweeted:
The halving of Bitcoin is expected to occur on May 11. Miners are pushing up Bitcoin's computing power. The next difficulty adjustment is coming soon.
In addition, in the past few days, both BCH and BSV have completed the block reward halving. Unsurprisingly, the computing power of both chains has dropped significantly. Because Bitcoin can be mined with the same ASIC miner, the original BCH and BSV miners are now transferring their computing power to the Bitcoin network. In fact, miners have long switched computing power between these cryptocurrencies and other cryptocurrencies using the SHA-256 algorithm to find the network with the highest profit margin.
After Bitcoin is halved, many of these miners may switch their computing power to mining competing coins again.
"Half emotion" continues to grow
As the halving of Bitcoin approaches, the computing power of the entire Bitcoin network will continue to rise, because miners want to get as much Bitcoin as possible before the block reward drops. There is no doubt that with the restoration of market confidence, even if there is no profit at present, many mining machines that have been shut down for a long time will restart
In fact, as analysts continue to publish analytical articles on how Bitcoin halving will affect market prices, the market's excitement around halving continues to grow. Google's search volume for "halving bitcoin" is steadily increasing, and it is expected that there will be a growth peak in the next few weeks. The number of on-chain transactions on the Bitcoin network is also continuing to rise. There is no doubt that many investors are planning to buy bitcoin while the bitcoin price is relatively low.
Mining activity is another indicator that the Bitcoin network is still strong and operating as planned. There is no doubt that in the next few weeks, Bitcoin mining will fluctuate, but in the long run, the computing power of the entire Bitcoin network will definitely go up.