Bitcoin (BTC) is struggling to recover and break through the $21,000 mark. However, while things look bleak for the price, the hashrate is doing quite well. Indeed, it is gradually approaching the highs as the uptrend struggles to take over.
Bitcoin hashrate, what are the reasons for this increase?
The cryptocurrency sector has been in historic decline for months. But while bitcoin’s price is down more than 70%, its hashrate continues to rise. This leaves many people perplexed because the difference is obvious. Therefore, what are the reasons for this rise in the midst of a dark period?
According to some experts, several motives are behind the increase in bitcoin hashrate. Among other things, the fact that miners probably have savings to deplete. Indeed, this can take time. One can also mention the time it takes for users to spend block rewards.
More and more crypto traders are interested in blockchain and mining is taking on unimaginable proportions. Because of this, certain restrictions are put in place to limit the chances of users attacking the network. Among other things, the fact that miners can only spend their rewards three months after the discovery of the block. However, this may affect the calculation of expenses and income.
BTC still at the top despite everything!
Whatever the market trend, bitcoin (BTC) continues to make headlines. The increase in the bitcoin hashrate is proof of this. As we have seen, there are several reasons for this increase. However, miners could simply cut costs by using hydroelectric power.
However, regardless, miners tend to continue the hash even at high cost. Why ? Because they usually think it’s a temporary affair. As a result, they only close their doors in the event of bankruptcy. All of this is proof that bitcoin’s hashrate is less volatile than its price and therefore only reacts to extreme market events.
Despite the uncertainty in the markets for cryptocurrencies, bitcoin adoption is on the rise. Indeed, the fall in prices does not have a negative impact on the Bitcoin network. Miners are continuing their operations and the bitcoin hashrate is on track to reach all-time highs.
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