• Thu. Oct 10th, 2024

Bitcoin Hashrate Hits New Low: Here’s Why

Steve Kornacki

BySteve Kornacki

Jul 16, 2024
Bitcoin Hashrate Hits New Low: Here's Why

Bitcoin Hashrate Rebounds

As Bitcoin continues its climb above $60,000, analysts are closely monitoring its network dynamics. Recently, Bitcoin’s hashrate reached a new low two months after the last halving event.

In a recent update, analysts at Hashrate Index stated that Bitcoin’s 7-day average hashrate has returned above 600 exahashes per second (EH/s) for the first time since mid-June. Despite this rebound, there are still concerns about the network’s stability.

One of the key concerns is Bitcoin’s difficulty adjustment. The difficulty adjustment mechanism ensures that the time it takes to mine a new block remains consistent regardless of changes in the number of miners. This upcoming “nasty positive adjustment” could make it harder for miners to mine new blocks, potentially impacting their profitability.

Bitcoin Transaction Fees Down 11.6%

Adding to the complexity of the situation is the network’s transaction fees. Over the past week, Bitcoin miners earned only 97.92 BTC in transaction fees, down 11.6% from the previous week’s 110.73 BTC.

While low transaction fees are beneficial for users, they are less favorable for miners who rely on these fees as a crucial part of their revenue. Moreover, the hashprice – a measure of miner revenue per terahash – remained low, hitting $44.31 per petahash per day.

The drop in hashprice can be attributed to various factors, including recent large-scale Bitcoin sell-offs by the German government. This challenging environment for miners is reminiscent of the difficulties they faced in May 2021, when China’s crackdown on crypto mining significantly reduced hashprice.

A Surge in Bitcoin’s Price

Despite these challenges, Bitcoin’s price has surged, passing the $60,000 mark. This rise follows a significant inflow of over $300 million into multiple spot Bitcoin exchange-traded funds (ETFs), marking the seventh consecutive day of positive inflows for these funds.

The positive sentiment around Bitcoin ETFs has offered some respite to the market. However, the summer season in the US could bring additional challenges to the Bitcoin mining industry, particularly with the increased strain on the electrical grid.

Craig Wright Faces Perjury Charges

Meanwhile, there’s been an update on the legal issue with Craig Wright, an Australian computer scientist who claimed for years to be the creator of Bitcoin. A judge in London found that Wright had lied about being Satoshi Nakamoto, the mysterious author behind the 2008 Bitcoin white paper.

The judge has referred Wright to British prosecutors for possible perjury charges. In March, Judge James Mellor of London’s High Court ruled that the evidence presented overwhelmingly disproved Wright’s claims.

This ruling came after the Crypto Open Patent Alliance (COPA) initiated a trial. COPA sought to protect Bitcoin developers from being sued by Wright, who has pursued legal action to assert his alleged identity as Nakamoto. Judge Mellor’s latest ruling indicates that his false testimony in court warranted a referral to the Crown Prosecution Service (CPS).

Compelling Evidence

Furthermore, COPA had presented compelling evidence and expert testimony that exposed the fabrications and inconsistencies in Wright’s purported proof of his identity as Nakamoto. COPA’s legal team meticulously dismantled Wright’s narrative, showing how he manipulated documents and presented false evidence. This included expert analysis that refuted Wright’s supposed cryptographic proofs and other documentation he presented as evidence of his identity as Satoshi Nakamoto.

Steve Kornacki

Steve Kornacki

Steve Kornacki, a respected author at Big Trends Signals, uses his deep online trading acumen to create comprehensive guides and balanced reviews, empowering traders in their digital pursuits.

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