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The increased hash rate indicates maximum security on the Bitcoin network.
The Bitcoin (BTC) blockchain is arguably more secure than ever as the network mining hash rate has continued to grow and hit a new All-Time High (ATH) of 258 exahashes per second (EH/s) on Oct. 4, according to Braiins Insights, a mining data tools, and metrics company.
The Bitcoin protocol has come quite a long way over the past few years considering the fact that the hash rate plummeted to new lows when the Chinese government cracked down on miners and sent them packing from its shores. The miners in the industry have been quite consistent in rebuilding the hash rate as some sought solace from more crypto-mining-friendly countries.
The current market outlook is not one that can naturally fuel renewed interest in Bitcoin mining activities, however, analysts believe miners are optimistic about the future of the cryptocurrency.
“The hash rate hitting another all-time high shows that miners are bullish about the future prospects of Bitcoin,” said Bitcoin Gandalf from the marketing team at Braiins. He added that “Bitcoin continues to trade in this tight band between $19,000–$20,000 and this recent increase in hash rate will result in a sharp upward adjustment in mining difficulty meaning that miner margins will be further squeezed.”
As it stands, Bitcoin miners are not focused on immediate gains but on the longer sentiment that the price of the asset will grow over time. At present, Bitcoin is down by more than 58% year-to-date as global economic turmoil, fueled by soaring inflation has made investors more cautious about investing in the coin.
However, miners are optimistic that the last laugh belongs to them, and that the current 6.25 BTC reward is worth much more in the long run as scarcity catches up with the coin.
Bitcoin Hash Rate at ATH: Factors Driving Mining Growth
There is growing speculation as to the primary reasons why the Bitcoin hash rate is growing at this time. Two key fundamentals stand out, and the first is associated with the shift of Ethereum from the Proof-of-Work (PoW) model to the Proof-of-Stake (PoS) model.
The rationale here is that miners from the Ethereum network are now moving their miners to connect with the Bitcoin network en masse. Despite the ETHW token that was hardforked after the merge event, Bitcoin still comes off as a more viable PoW coin to invest in.
The second fundamental is in the latest mining machines from Bitmain, the S19 XP Antminer coming online. With most of the preordered S19 XP now being delivered across the board, more computing power is making its way into the Bitcoin network.
The increased hash rate indicates maximum security on the Bitcoin network and with more commitment to investing in the sector, mining activity is expected to grow, leading to a steeper growth in the hash rate in the near term.