The Bitcoin network and its performance are transparent and can therefore be monitored very easily. The so-called hash rate also comes into focus again and again because it indicates how much computing power the miners provide.
The fact that it is rising is seen by many analysts as a very bullish signal for the market. After all, the additional computing power also means expensive investments. In addition to the energy costs, the purchase of powerful ASICs requires a price that the miners have to pay in advance.By this decision, the “gold diggers” would therefore put their trust in the network in economic terms, the proponents of the thesis. According to Blockchain.com, the hash rate on March 1 was more than 136 million TH / s, reaching a new record high.
Bitcoin Halving will come
The date for the halving is getting closer. The reward for each mined block is halved from 12.5 BTC to 6.25 BTC. As a result, it will be harder for miners to produce new Bitcoin.
The deflationary nature of Bitcoin gives the asset its high value. According to the protocol, there will be a maximum of 21 million BTC.
So if the rate at which new BTC is put into circulation drops, Bitcoin is also subject to an additional shortage in production.Critics fear that the event could have an incentive for the miners to convert their investments into cash quickly and thereby push the course. Some even assume that the halving and increasing hash rate will push smaller market players out of business.