Hashrate is a measure of the power of the computers linked to the Bitcoin blockchain, which determines their ability to produce new coins. Increasing hash power suggests miners are optimistic about making profits.
This might as well influence the price of bitcoin higher, given the strong correlation between the two. But the relationship is not exactly as linear, because it is difficult to gauge future price changes based on hashrate alone, so things can turn out differently.
The good thing is that when miners commit more computing power to process bitcoin transactions, that helps secure the network against 51% attacks – a situation that could allow rogue miners to hijack the system and double-spend some coins.
The top cryptocurrency has struggled to break resistance at $12,000, remaining capped in the $11,200 to $11,800 range for a couple of weeks now. Some pundits expect the price to hit $28,000 by year-end.
What do you think about Bitcoin’s rising hashrate? Let us know in the comments section below.
The post Bitcoin’s Hashrate Hits Record High 130 EH/s, as BTC Price Faces Resistance at $12,000 appeared first on Bitcoin News.
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