After May’s halving some skeptics began talking that miners would quit their activity as the process will become extremely difficult. Three months of BTC price growth and the Bitcoin (BTC) hash rate has bitten the records.
The high hash rate and a secured Bitcoin mining industry have always been the positive indices for BTC trend long term development.
Growing hash rate is a positive sign for BTC?
Based on information from Glassnode, the mining difficulty of Bitcoin has grown for 3.6% in on Aug. 24 and keeps growing. All information shows that miners continue active mining even after halving.
Although the Bitcoin hash rate has been constantly growing but this time the situation is little bit different.
Due to halvings the earning of miners drop per 50% every four years together with the increase of operational expenses.
Un theory the growth of BTC price should decrease the number of miners who get profit from it but in practice the price is growing so it makes mining more attractive.
At the same time the fast recovery of the hash rate since the halving supposes that the miners would wait the BTC mid term price growth.
Another reason of the hash rate growth depends on the mining profitability in China. The most popular region for mining for the moment is Sichuan province due to the expansion of hydro power plans and low electricity costs.
Mining Store’s CEO JP Baric mentioned
“Bitcoin mining revenue with the latest generation hardware ranges anywhere from $70/MWh to north of $200/MWh depending on price, global hashrate, and difficulty. Power is currently generated at a price of $17 an MWh at a Natural Gas Plant. Do the math.”
So these two factors are the core ones for hash rate growing.
Does a growing hash rate suppose the reduction of selling pressing?
Willy Woo, an on-chain analyst, recently mentioned that the miners cause the external influence on BTC price. When they do selling off such action significantly press crypto market.
Taking into account the existing situation there are no signs that miners will do BTC mass selling in the nearest future.