Just to clarify, Bitcoin HAS NOT set a new all time high value, of over $20,000.00, so don’t start selling off just yet.
According to new reports though, via data on the Bitcoin network, Bitcoin has set a new all time high hashrate, in line with a huge surge in the dominance of Bitcoin. This is exciting for a number of reasons.
Before yesterday, the all time high hashrate for Bitcoin stood at 43 quintillion per second, (43 million to the power of five), however, yesterday, this hashrate reached an all time high of 52 quintillion per second.
If you’re unaware of the jargon, or need a reminder, here is a great definition of hashrate, as according to Coinsutra:
“Hash Rate, also Hash Power, is the measuring unit that measures how much power Bitcoin network is consuming to be continuously functional. By continuously functional I mean how much hash power is it consuming to generate/find blocks at the normal mean time of 10 minutes.”
See more for yourself, here.
So, yesterday, this ‘power’ reached an all time high in terms of output, leaving many experts pretty excited about what could be to come for Bitcoin. As stated, Bitcoin dominance is quite high at the moment. At the time of writing, Bitcoin dominance stands at 47.6%. What this means is that Bitcoin has a strong grip on the markets through an especially high market capitalisation. Therefore, as the price of Bitcoin rises, it is likely that the rest of the markets will follow suit too. Bitcoin now has the power to really change the climate, in essence.
Back to the big news then, and the 52 quintillion per second hashrate.
According to Zycrypto, this all time high ‘reach’ has been coming for some time:
“This figure hasn’t just dropped on us on one day. It’s as a result of continued acceleration of the hashrate for months. In fact, this trend has been a consistency for the crypto. In the last 3 months alone, the hashrate has shot up by over 60%. By June, the figure stood at 43 quintillion per second.”
See more for yourself, here.
The important take home message from all of this, is that it is through these technical developments that Bitcoin can gain the exposure it needs to fly. This, whilst it might not directly lead to a bull run could have a very positive impact on the value of Bitcoin through the coming months. If hashrate continues to climb, the landscape for mining will change and with it, so should the profitability of the industry. As this climbs, the intrinsic value of Bitcoin will naturally follow on. And, as we know when Bitcoin climbs, the rest of the markets will follow on, even more so with Bitcoin dominance so high at the moment.
To conclude then. Bitcoin has reached a new all time high hashrate, yes, but let’s consider that this could be the start of a journey towards a new all time high value too.
Note that this is not investment advice, please do your own research before choosing to invest!