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Despite the alarmist predictions, Bitcoin is once again proving its robustness. Indeed, the latest data reveals that the major cryptocurrency’s mining hashrate has recently reached a historic milestone, putting to rest the concerns associated with the recent Halving. This event demonstrates miners’ renewed confidence in Bitcoin.
An unwavering upward trend
The Bitcoin hashrate, which measures the total computing power deployed by miners, has just reached an all-time high. Thus, the 7-day moving average of this key indicator recently broke its previous all-time high. This remarkable feat comes just two months after the fourth Bitcoin Halving, which cut miners’ rewards in half.
Additionally, many observers expected the hashrate to drop, with some miners potentially becoming unprofitable. However, the uptrend in Bitcoin’s hashrate was only briefly slowed before it resumed with a vengeance.
Catalysts of this improvement for Bitcoin
Several key factors explain this increase in mining hashrate on the Bitcoin network. On the one hand, technological advances have made it possible to increase the energy efficiency of mining equipment, allowing miners to increase their cryptographic performance without significantly affecting their costs. On the other hand, and this is probably the main driver, the recent increase in the price of BTC in crypto markets has largely offset the decline in block rewards.
Although these mining subsidies are fixed in BTC, their value in US dollars fluctuates depending on the price of this pioneering cryptocurrency. Therefore, the remarkable appreciation of Bitcoin in recent weeks on cryptocurrency platforms has increased the income of miners and encouraged them to strengthen their presence in the decentralized network.
So the halving in 2024 will be far from a stop for Bitcoin, but a short blip. The flagship cryptocurrency once again confirms its extraordinary resilience, powered by a mining ecosystem that is more energetic than ever. A strong signal that will surely reassure investors about the long-term fundamentals of Bitcoin.
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The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.