Although the Bitcoin market has been far from smooth, there are strong indications that the digital asset’s network may be getting stronger.
According to Longhash, a blockchain data and news company, Bitcoin hash rate has seen an increase of 550% in the last twelve months bringing it to the nearly all time high of 55,000,0000 TH/s.
This was contained in a post on the company’s official Twitter page in the early hours of today Wednesday 24 October 2018. The hash rate is “one of a few key metrics determining Bitcoin’s network strength,” the post says.
Bitcoin’s hash rate is holding steady at roughly 55,000,000 TH/s near all-time highs.
Bitcoin’s network hash rate has grown 550% in the past year, and is one of a few key metrics determining Bitcoin’s network strength. pic.twitter.com/vqN9c1MQdN
— LongHash (@longhashdata) October 24, 2018
Hash rate refers to the speed at which a computer completes a set of tasks which in the bitcoin network translates to how fast miners attempt to solve a problem using the proof-of-work algorithm to receive reward. This in turn determines how many blocks miners are able to mine within a certain period of time.
An increased hash rate means more security, power, capability and value for the bitcoin network and many consider it to be an indication of future price gain for the asset since it suggests the wellness of the entire system.
This increase may be a surprise to many as the decline in Bitcoin price is expected to reduce mining profitability and hence reduce the miners’ willingness to mine blocks. In fact, the bear market seems to have fueled the increase in hash rate.
In an interview with Bloomberg, the chief operating officer at Blockbid, David Sapper mentioned in August 2018 that the increasing hashrate points to the fact that users are impressed with the bitcoin market and are sticking around for long. Another explanation according to Sapper is that the mining industry is rapidly growing and attracting more investors.
In the meantime hopes are high for the approval of a Bitcoin ETF after the October 26 deadline given by SEC for review of applications. According to a source, the meeting held between SEC commissioner and applicants for VanEck ETF is likely to yield positive results as the commissioner is crypto friendly unlike his colleague who is expected to leave by December 2018.
This occurrences may be an indication of good things to come for bitcoin as many more investors may be encouraged to venture into the bitcoin market. The potential ETF approval alone is expected to really boost the market and with the current hashrate, who knows what may happen in the future?