🚀Bitcoin hash rate and price hit new highs, and the driving force behind it is actually this!
As the price of Bitcoin (BTC) returns to the $100,000 mark, Bitcoin's hash rate has also reached a record high. This is a big deal, because the hash rate is an indicator of the total mining capacity of miners. Once this indicator rises, it means that miners are either expanding the scale of mining or new miners are joining the game.
Let's take a look at the trend in the figure below. Last month, Bitcoin's hash rate rose sharply, and this indicator was also synchronized with the surge in Bitcoin prices.
We all know that miners' income mainly depends on two parts: block subsidies and transaction fees. Block subsidies are their rewards for solving blocks, and transaction fees are the tips attached when we transfer money.
However, from a historical perspective, transaction fees only account for a small part of miners' income. This is reflected in Glassnode's latest weekly analysis, which shows that block subsidies account for the vast majority of miners' income.
In addition, in the Bitcoin system, mining rewards are halved every four years, and the rewards remain basically constant at other times. Therefore, the price of Bitcoin is directly related to how much money miners can make. If the price of Bitcoin rises, miners will earn more, and the enthusiasm for mining will be higher, which will be reflected in the total computing power of mining, which is what we call the hash rate.
An interesting phenomenon is that although the price of Bitcoin continues to rise, the 7-day average hash rate has declined a while ago. However, miners seem to have adjusted their strategies, and now the hash rate is starting to rise and challenge the historical high.
💬 What do you think is the main factor driving the rise in Bitcoin hash rate? Is it the addition of new miners or the original miners expanding their mining scale? Leave your opinions and analysis in the comment area!
