There are many indicators to determine the current health of Bitcoin. As more people start to look beyond the price, a rather interesting tale becomes apparent. The network hashrate is climbing to a new all-time high, indicating how a bullish second half of 2020 is within reach.
BItcoin Hashrate Soars
It has been a very interesting first half of 2020 for Bitcoin miners. A steep BTC price dip, followed by a block reward halving, could have significant consequences. The expected decrease in network hashrate did not last long, although there was a dip to just under 80 exohash per second. Overcoming that dip happened fairly soon, and almost resulted in a new hashrate all-time high several weeks later.
Ever since, there has been a lot of hashrate volatility, so to speak. Numerous ups and downs have been recorded since mid-April 2020, which was somewhat to be expected. Without a steep price increase, mining Bitcoin isn’t necessarily profitable for most smaller miners. Bigger operations will feel the impact less quickly, as their overall profits should be sufficient to keep them afloat.
What is remarkable, is how the hashrate has noted a slow and steady climb since late May. Although there have been a few setbacks, the overall growth has remained largely unaffected. It is this trend that as now yielded a new all-time high of 139 exohash/second.
Depending on which charts one uses, there may have been a peak of 168 Exohash weeks ago, but that lasted for a few hours. This is the highest peak recorded for at least one full day. Continuing this rate of growth will not be easy, however, The current Bitcoin price increase might make it a bit easier for smaller miners, but only if the push can be sustained for at least a few days.
It’s not About the Fees
One factor contributing to a rise in Bitcoin hashpower is the amount of fees earned by miners. This most recent surge has little or nothing to do with that. While there is indeed a jump in Bitcoin transaction fees per day, that trend is now showing signs of a steep reversal.
With just 123.6 BTC in daily transaction fees, the current figures are not exactly impressive. It is a higher figure compared to Q1 2020, but that’s about it. A major peak was recorded in late May and early June, but that too has come to pass.
It is an interesting aspect worth keeping an eye on, but for now, the fees don’t seem to influence miners all that much.