Mining

Bitcoin’s Hashrate Reaches All Time High as Price Nears $9,000

from Trust Nodes 4 years ago 0 0 1121

Bitcoin’s hashrate has reached 62 quintillion per second, or petahashes, a number that comes after trillion and quadrillion.

That’s the highest it has ever been, with confidence seemingly returning to the world’s first cryptocurrency.

After almost a year, bitcoin’s hashrate has finally overtaken the August 2018 all time high of 61 quintillion.

That’s after it fell some 50% at the end of last year to a low of close to 30 petahashes per second, with it only rising since in what appears like a V recovery.

That’s ahead of a halvening in now 11 months when block rewards are to fall from 12.5 btc a day to 6.25, bringing BTC’s inflationary rate to just under 2%.

It will remain there in line with FED’s target until 2024, when it will then fall to under 1% and perhaps closer to 0.50%.

At which point, probably for the first time, bitcoin will effectively become deflationary as the amount of coins lost to dust or keys corruption or for whatever reason might overtake the amount of coins produced at 3.125 BTC per block.

Then in 2028, less than a decade from now, bitcoin’s new coin production reaches an inflationary rate of effectively 0%, falling to 1.5625 BTC per block.

This will then continue, effectively indefinitely, never quite reaching zero, until it breaks pi.

Just as confidence has returned to mining, so too to bitcoin’s price which has been rising since April the 2nd to now not far off from $9,000.

On the daily candles above, it looks like there’s a cup and handle in that U shape there with the latest candle perhaps the handle.

That’s usually a very bullish sign as it suggests bears couldn’t keep it below $8,000, so perhaps running out of coins to sell for now.

Whether that is indeed the case, time will tell, but there are many factors that have recently begun putting upwards pressure on bitcoin, from the planned test launch of Bakkt bitcoin futures, to an apparent flight of capital in Hong Kong, in addition to the Brexit uncertainties, and much else.