Bitcoin Reward Halving provides massive increase in hash rates
The hash rate measured in the Bitcoin network has reached a new all-time high. Due to the upcoming Halvings and also the rising price more and more people feel addressed to invest their money now into the Bitcoin – or better said to function as miners, who then mine Bitcoins. A development, which does the Bitcoin expressed well, since so the network wins at security.
Hash rate higher than in record year 2017
Currently BTC is going parabolic (read more at https://londonlovesbusiness.com/bitcoin-goes-parabolic-again-time-to-trade-it/). All those who still doubt the incentive structure of the Bitcoin should now deal with the hash rate. The sharp price rises seen in the last few weeks have finally attracted new miners. It is therefore no surprise that the hash rate, i.e. the computing capacity gathered in the Bitcoin network, reached a new all-time high.
On June 25th, the hash rate was 66 million TH/s. Looking back to December 2017, when the Bitcoin scratched the 20,000 US dollar mark, the hash rate was 55 million TH/s. The hash rate was at 66 million TH/s on June 25. Thus, today’s computing power is about 20 percent higher than the Bitcoin all-time high; currently, the Bitcoin is about 35 percent below its record set at the end of 2017. It has become very attractive to earn bitcoin online as you can read in the article: http://fooyoh.com/geekapolis_gadgets_wishlist/15353697/dont-buy-bitcoin-earn-bitcoin-online.
Hardware manufacturers are pleased about higher demand
Higher prices ensure that more miners are found who then connect new devices to the network in order to be able to mine Bitcoins. Because if you get coins, you can be happy about a very high profit. By the way, the market mechanism is not new: higher demand, i.e. rising prices, have always provided for a supply-side reaction – even when dealing with the commodity gold. If the price of gold rises, the gold mines increase their efforts to find even more gold, so that the ever-increasing demand can also be met.
With each bull run more miners join the network. However, this does not lead to inflation of the money supply, but to an increase in security. Because with each Terahash computing capacity more that is fed into the network, the immutability of the consensus about the transactions carried out then increases. This is a kind of feedback loop of functional incentives, which is probably also the reason why the Bitcoin cannot disappear from the image surface in the near future.
So anyone who has taken a look behind the scenes will not be surprised that the big hardware manufacturers, such as Canaan Creative, have their first problems when it comes to fulfilling orders. “Stocks have gone down, but demand is still high,” says Steven Mosher of Canaan Creative.
In 2020, there will only be 6.25 instead of 12.5 Bitcoin/Block
Even though there are many market observers who believe that the trade dispute between the USA and China and Libra, the new Facebook currency, are mainly responsible for the Bitcoin’s high flight, these are positive aspects, but the “halving” seems to be the main reason for the price explosion. The next halving is expected in 2020. Then the miners will only get 6.25 bitcoins/block – currently 12.5 bitcoins/block.
The so-called “halving” is a process determined by the software that can be observed after around 210,000 coins have been mined, i.e. after around four years. If there are 210,000 new coins, this is halved.
Flying high continues: Bitcoin is already at 13,000 US dollars
In the last six months, the Bitcoin’s price has risen by an incredible 120 percent. At the beginning of the year, the crypto currency was in the 3,500 US dollar range – in April, Bitcoin then surpassed the 5,000 US dollar hurdle.
In mid-June, Bitcoin then shot at over 10,000 US dollars and even scratched the 14,000 US dollar mark on 26 June. After a short correction, however, the high seems to continue; experts even assume that the magic 20,000 US dollar hurdle will fall this year and a new all-time high could be set.