Although bitcoin (BTC) hash rates have dropped dramatically in recent weeks, Blockchain.com research head Garrick Hillman is not a cause for concern.
Blockchain .com was founded in 2011 by perverts to launch another early cryptocurrency – Coinbase. It was one of the earliest Bitcoin analytics providers and eventually expanded its services to include a non-custody platform as well as a cryptocurrency exchange and lending platform. The company also coined the term “hash rate” as a calculation that “estimates [the number of] terraces per second performed by the Bitcoin network.”
Bitcoin hash rates tend to be very volatile. It fell to its lowest point in a year of 76 million TH / s on March 25, before reaching a series of constant highs after Bitcoin’s last block was cut in half. The latter peaked with a hash rate of 161 million TH / s on September 25.
However, a month later, the trend reversed as hashing dropped to 95 million TH / s on October 27. While the ultimate cause remains unknown, some speculate that the recent decline was due to the seasonal migration of bitcoin miners. In China.
In an interview with Cointelegraph, Hillman explained that he doesn’t necessarily see the fall as a cause for concern:
The hash rate is clearly much higher than tracked and halved in May. So this is not considered a big problem for me. This is interesting data. But after cutting in half, we saw other recessions, which are about the same percentage. So it might just be noise or something not very important, but it’s definitely worth looking at. ”
The fragmentation rate has recovered slightly over the past two days to 107 million TH / s. Still low for the year after entering 2020 at 111 MW / s. While price and hash rate have historically been highly correlated, you don’t see that the recent decline in retail speed seems to have affected the price.