Bitcoin\u2019s price may not look exciting this month, but the network\u2019s total hash rate has returned to logging regular new all-time highs.<\/p>\n
The divergence between security and price is a sign that Bitcoin mining firms are happy to continue installing new computer hardware, even amid uncertain business\/ market conditions.<\/p>\n
According to on-chain analytics firm Glassnode<\/a>, miner revenue has declined substantially since Bitcoin\u2019s price reached its all-time high in March.<\/p>\n While largely due to the falling price of BTC and the Bitcoin halving in March crushing rewards from Bitcoin\u2019s block subsidy, it\u2019s also due to Bitcoin transaction fee revenue sinking into the gutter.<\/p>\n Nevertheless, hash rate still tapped a new high of 693 exahashes per second (EH\/s) on Sunday, keeping competition high in a low revenue environment. \u201cPresently, the average required number of hashes to mine a block is 338,000 exahash,\u201d Glassnode wrote.<\/p>\n What\u2019s more, while this would normally incite Bitcoin mining firms to start selling their BTC to cover their costs, on-chain data suggests they\u2019ve adopted a buy-and-hold strategy.<\/p>\n \u201cMiners tend to be pro-cyclical, being sellers during drawdowns and HODLers during uptrends,\u201d analysts continued. \u201cThe uptick in hash rate and difficulty represents an increasingly expensive production cost for BTC, which may adversely affect miner profitability in the near future.\u201d<\/p>\n Marathon Digital \u2013 the largest publicly traded mining firm \u2013 has publicly confirmed that it\u2019s now devoted to HODLing<\/a> as much BTC as possible. It\u2019s also using convertible debt<\/a> to purchase more BTC much like the Bitcoin development company MicroStrategy, suggesting increased confidence in immediate BTC investment over the mining business itself.<\/p>\n On one hand, some of Bitcoin\u2019s on-chain metrics don\u2019t look great for its price: Bitcoin\u2019s net settlement volume has declined toward its yearly average, and its monthly centralized exchange trading volume has fallen well below they yearly average. In others words: less trading, less speculation, and less demand for BTC.<\/p>\n On the other, several popular investors including Bitwise CIO Matt Hougan and BitMEX co-founder Arthur Hayes<\/a> believe Bitcoin is due to bounce back when September ends.<\/p>\n According to Hougan, September is seasonally slow<\/a> for Bitcoin and stocks broadly, while October and November are some of the asset\u2019s best months on average. \u201cMy base case remains that we see a significant rally as this uncertainty starts to dissipate in October and November,\u201d Hougan said on Monday.<\/p>\n The post Bitcoin Hash Rate Hits A New All-Time High Despite Price Woes<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin\u2019s price may not look exciting this month, but the network\u2019s total hash rate has returned to logging regular new all-time highs. The divergence between security and price is a sign that Bitcoin mining firms are happy to continue installing new computer hardware, even amid uncertain business\/ market conditions. Bitcoin\u2019s Unrelenting Hash Rate According to […]<\/p>\n","protected":false},"author":0,"featured_media":5710,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-5709","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/5709"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5709"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/5709\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/5710"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Will Bitcoin\u2019s Price Recover For Miners?<\/h2>\n