Bitcoin’s Hashrate has reached a new record level of over 140 EH/s. It tells us about increased activity in terms of mining process. What does halving has to do with all of that?
Bitcoin’s hashrate with new record
Bitcoin mixing index shows us the miners contribution to the mining process of leading cryptocurrency. By many people, its increase is caused of the upcoming halving. As it turns out, in 2016 the situation was the same. Despite the reduced profitability of mining, hashrate remained on the stable level that time.
According to Lennix Lai (Financial director of OKEx) this time the miners might feel much more disappointed. In his opinion, the industry may question the basic assumptions arising from halving process.
What did it look like with BCH and BSV? Not that long ago, both cryptocurrencies were facing halving. Not long after that, they noted a decline in both value and hashrate. There might be an explanation for all of that. Diego Gutierrez Zaldivar from IOVlabs said:
These networks share the hashing algorithm with Bitcoin, so hashing power continuously migrates among them. When the Bitcoin halving takes place, there is no alternative network to exist, so there is more likely to see miners whose operating costs are higher than BTC price itself
This in turn means, that they can remain with BTC. It is good to remember, that halving takes place every 4 years (after mining 210 000 blocks). The halving itself is not new for cryptocurrency market, and because of that people that mine cryptocurrencies has already decided whether to stay on market, or just to leave it.
Hashrate and network safety
It is worth mentioning, that big hashrate growth means better safety for the network. What if there would be a big decline in hashrate? Gutierrez thinks, that even if that happens, Bitcoin will remain the most safe, decentralized network on earth.
On the other hand, there are people like Mati Greenspan (popular cryptocurrency analyst) thinking, that more the Bitcoin price increases before halving, the bigger chance for leading cryptocurrency hashrate not to decline.