Bitcoin’s Hash Rate Hits New Highs, Leading to Imminent +11% Difficulty Adjustment

Bitcoin’s recent price turbulence has not been emblematic of its underlying strength, as the cryptocurrency’s hash rate has been plowing higher throughout the past several weeks and months, just setting another fresh all-time high.

This metric’s growth signals that demand for the Bitcoin network is incredibly high at the moment, despite many of the cryptocurrency’s detractors stating that it is being overshadowed by Ethereum.

How To Get Free Crypto  

It is true that Ethereum has seen a spike in blockspace demand like never before, but this has come about due to the inflows of users that need to use ETH to transact on decentralized exchanges.

14 BTC & 95,000 Free Spins for every player, only in mBitcasino’s Exotic Crypto Paradise! Play Now!

Bitcoin, on the other hand, appears to be seeing more organic usage, which also comes as more transaction begin taking place outside of exchanges. This may come from peer-to-peer transactions, or even over-the-counter deals taking place between large buyers.

The rising demand for the Bitcoin network is what has caused its hash rate to surge. This, in turn, is leading to an imminent +11% difficulty adjustment that is slated to take place this coming weekend.

Bitcoin Transactions are Rapidly Moving Off of Exchanges

As NewsBTC reported last week, transaction data shows that users are beginning to transact with BTC at a rapid rate off of exchanges.

Coinbase Banner  

This means that the network is being used more widely by users, with its utility stretching beyond just being used by speculative investors who buy BTC on an exchange and let it sit there until they sell it.

As cited within the report, Glassnode spoke about this trend in a recent tweet, explaining that exchange fee dominance shows the declining role they are playing within the ecosystem.

“On-chain Exchange Fee Dominance shows the major role that centralized exchanges play in the Bitcoin ecosystem. 20% of all miner fees are currently used for BTC txs involving exchange activity. In 2018 after BTC peaked, this number was as high as 41%.”

Image Courtesy of Glassnode.

BTC to Undergo Imminent Difficulty Adjustment 

As Bitcoin’s hash rate reaches new highs, the blockchain is now about to undergo the second largest positive difficulty adjustment seen in 2020.

Glassnode also spoke about this in a recent tweet, referencing a chart showing the parabolic growth that BTC’s hash rate has seen.

FreeBitcoin Banner  

“Regardless of short-term $BTC price movements, Bitcoin’s hash rate continues to climb – and to hit new ATHs. At the current rate, miner difficulty is estimated to increase by 11% this Sunday – the second largest positive adjustment in 2020.”

Image Courtesy of Glassnode.

This metric may not have any direct impact on the cryptocurrency’s price action in the near-term, but it does bode well for the asset’s fundamental outlook.

Featured image from Unsplash.

Go to Source
Author: Cole Petersen

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.