The Bitcoin has rate has recently reached a new all-time high. This news comes from an August 19th data report from Blockchain.com, which monitors blockchain data. However, could the Bitcoin price soon follow in the hashrate’s footsteps and reach a new ATH?
Bitcoin’s hash rate reaches new ATH
Specifically, Bitcoin’s hash rate has continued to breach previous records all throughout the summer. Today, Bitcoin managed to hit an astounding hash rate of 82.5 million tera hashes per second (82 500 000 TH/s). This can be seen on blockchain.com – and is more than double the hash rate seen in December.
Moreover, some are predicting that this increasing hash rate could be a bullish signal for the price of Bitcoin. As such, the Bitcoin investor Max Keiser has said that Bitcoin’s price will likely follow in the hash rate’s wake:
“Price follows hashrate and hashrate chart continues its 9 yr bull market.”
This argument is mainly based on the belief that a crypto’s hash rate signifies the security of the network. Furthermore, the higher the security, the higher the investor confidence will likely be. This, in turn, can be seen as increasing the demand for the premier crypto.
Improving fundamentals improve Bitcoin’s price?
In essence, Keiser’s comment relates to a notion that BTC’s price is being driven by network fundamentals. As such, improving network fundamentals are paving the way for a higher Bitcoin price.
Put simply, the hash rate of any given crypto can be seen as the number of calculations completed, or performed, by the crypto’s network. Consequently, a higher hash rate equals greater competition among the different network miners for validating new blocks.
In addition to this, it also boosts the amount of resources attackers would need to perform a so-called 51% attack. This means that it becomes substantially harder for any rogue group or organization to “take control” over the network.
Furthermore, this latest hash rate high is the latest in a series of numerous hash rate highs seen during the summer. These increasing hash rates can, then, be seen as improving network fundamentals, and making the Bitcoin network as a whole more robust.
It remains to see whether the Bitcoin price will continue to soar along with the increasing hash rate – however, the improving fundamentals certainly mean that’s a strong possibility.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.