Although Bitcoin’s (BTC) hash rate fell sharply In the last few weeks the research director at Blockchain.com, Garrick Hileman isn’t worried.
Blockchain.com was founded in 2011 by broken members of another crypto startup, Coinbase. It was one of the first websites to offer bitcoin analytics and eventually added a to its services Non-Custial Billtera, Exchange and Cryptocurrency Lending Platform. The company too invented the term “hash rate” as a metric that “estimates” [el] Number of terahashes per second that the Bitcoin network runs. “
Bitcoin’s hash rate is usually very volatile. It fell to its lowest point of the year, TH76 million / s on March 25, before hitting multiple all-time highs following the recent block reward reduction on Bitcoin mined (halving). This latter trend eventually culminated in a hash rate of 161 million TH / s on September 25th.
A month later, however This trend was reversed and the hash rate dropped to 95 million TH / s on October 27th. While the ultimate cause remains a mystery, some have suggested that the final decline was caused due to the migration of Bitcoin miners in China due to the change of season.
In an interview for Cointelegraph, Hileman stated that he doesn’t necessarily see the fall as a cause for concern:
“The hash rate is obviously much higher than it was after the halving in May. So this isn’t a big problem for me. It’s an interesting data point. But we’ve seen other halving declines. Half of that is very similar in percentages So it might just be noise or something that isn’t that important, but it is something that you no doubt need to monitor. “
The hash rate has recovered slightly in the past few days up to 107 million TH / s. It remains low year-over-year and started at 111 million TH / s in 2020. Though historical Bitcoin price and hash rate have shown a strong correlation the last drop in hash rate It doesn’t seem to have affected the price.