Compared to its peak in 2020, Bitcoin's hashrate plummeted by nearly 45%.
According to information from primexbt news, so far, the hashrate of Bitcoin (BTC) this year peaked at 136.2 EH / s (Quintillion Hash per second) on January 1. 03; however, this rate started to fall sharply shortly thereafter and is now down about 45% to 75.7 EH / s as of March 26.
A similar chart (pictured below) is also featured at Coin.dance, blockchain analysis page. According to the site, this year's hashrate peaked at 150 EH / s on March 5 and continued to drop 29% to 105.6 EH / s as of March 26.
Hashrate and difficulty to mine
Through the hashrate we can evaluate the computation power of cryptocurrency networks per second.
In the case of a high hashrate it proves that miners have a stiff competition with each other to be able to validate new blocks. However, this competition also makes the network more secure. In addition, this higher rate will make the "51 attacks" more difficult to execute because the cost and resources are greater.
Given some dramatic and volatile Bitcoin market events in the past month, in such a short period of time that losses will be as high as 60% by mid-March and fall to around $ 3,600, and difficulty for BTC mining has also dropped by almost 16% on March 25.
In terms of the difficulty of mining, we can understand the difficulty that a blockchain block can be calculated to solve and validate. As well as ensuring a 10-minute time for validating each block, the system will adjust the difficulty every 2016 by itself (equivalent to 2 weeks).
Difficulty to exploit and hashrate are closely linked, acting as the principle of a counterbalance mechanism. This is demonstrated by the fact that when the network has a low rate of exploitation, the mining difficulty will decrease. On the contrary, the difficulty will increase during high mining period.
According to reports on March 25, the latest difficulty adjustment was on February 25, 2020, when the value of 1 BTC fell to around $ 9,900. But after just three days, the value has been steadily falling to around $ 8,800 and continues to fall near $ 4,800 as of March 14 - and on some exchanges as low as $ 3,600
Interpret the data in the report
The "miners' capitulation cycle" is the cycle that some analysts have stated against historical trends created by the relationship between value, hashrate and difficulty. exploit.
Theoretically, the hashrate and mining difficulty will still increase while the value of BTC remains high and the mining is still profitable. These two indices steadily rise until they reach a level where miners are reluctant to liquidate many of their holdings to be able to cover the funding. This leads to an increase in the supply of BTC.
"Capitulation point" can be understood as the period when some miners can no longer afford to continue mining, and it also affects the reduction of hashrate (through low rate of mining). .
According to btc.com, over the next 14 days the difficulty of mining BTC is predicted to continue to drop another 16%.
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