The popularity of Bitcoin is sky-rocketing day after day, and it is becoming a common household name. A cryptocurrency with an ambiguous origin is now on its way to become an integral and important part of the world economy, and people are smart enough to understand its value. This is why there is a sharp rise in the usage and trading of Bitcoin and cryptocurrency over the last couple of years.
The pandemic has also played its role in pushing the cryptocurrency towards the trajectory of growth and development. With other U.S. dollar and stock markets falling, crypto was among the very few assets which kept growing and flourishing.
This is good news for all those who have laid their bets on this valuable asset. In fact, it is the optimum period for anyone who wants to step into this industry. The prices of Bitcoin are showing significant growth and prospects, and the future just looks promising.
Now, let’s look into the math of the same. The researchers and Bitcoin economists have been claiming that the hash rate of Bitcoin has risen by 42 percent in just two days, and that is pointing towards a positive future.
Now, before we go ahead with this information, let us explain to you what does hash power or hash rate means. Basically, it is a common jargon used in the Bitcoin industry, and it stands for the number of people engaged in mining Bitcoin around the world. This is a layman’s definition, the technical explanation of which says the collective computing power of all the people around the world engaged in mining Bitcoin is called the hashpower.
There are thousands of miners around the world and they are putting all their knowledge and experience in to mine Bitcoin on an everyday basis. When they do that, they secure their computer networking and processing power to back up the data and that records all the Bitcoin transactions. Hence, out of all the things, this information is made public, and we actually know the hash rate or hash power of Bitcoin at the moment.
Now, the simple logic behind this thing goes like the higher the hash rate of a particular computer, the higher is the power of that system to mine Bitcoin. So, going by that definition we can simply conclude that the higher the hash rate of the entire Bitcoin mining system, the greater power is in the system to mine Bitcoin, and hence at the end of the day, a considerably high number of Bitcoin will be mined.
However, there is a catch and that’s when hash rate is higher more and more systems will be put to use to mine Bitcoin, and that in turn will increase the competition and make mining more difficult. Mining anyway is a very competitive market and very few regions in the world are really adept at the same.
Now, it seems like the Chinese miners who were on a big vacation have come back to the base and they are ready with their systems to dig deep into the Bitcoinupapp.com industry and mine huge amounts of coin. This is why the hash rate has increased by 42 percent within two days, and that is creating crazy competition in the industry. On the first day, it jumped to an all-time high of 30 percent and then the hash rate has been increasing ever since.
The current hash rate of Bitcoin is 157.5 exahashes per second and it will soon go beyond the 160 EH/s rate. Now, many researchers and Bitcoin scientists are naming Chinese miners for this shift. The reason being their country’s wet season is keeping them at home and they are utilizing this extra time in hand by mining Bitcoin aggressively. The Chinese are believed to account for 54 percent of global mining activity which is pretty huge. So whatever happens in this region will surely have an impact on the whole world.
These Bitcoin analysts believe that these Chinese miners have now successfully completed their migration from Sichuan and now they have reached their mining bases at Xinjian and Inner Mongolia which is causing this sudden increase in the rate.
This has created more competition in the industry, and it will be very difficult to adjust to this new system. These Chinese miners are very experienced, and it won’t be much of a trouble for them but for the rest of the miners, it will be a very difficult time to get through. We’ll have to watch what this trend means for the entire industry and where it takes Bitcoin’s price to.
Story by Scott Mccall
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