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Bitcoin’s Hash Rate Declined 30% – It’s Not That Simple

BTC Hashrate

The SHA-256 hashrate, which helps secure both the BTC and BCH blockchain has seen steady progression this year. At the time of writing, while markets have seen 15-30% losses this week, both BCH and BTC’s hashrates have continued to chug along unfazed. 

Daily Engagement and Hash Rate Metrics Update

347,747 transactions were added to the Bitcoin blockchain in the previous day. Regarding growth in actual usage of the blockchain for transactions, observe that over the past 7 days daily transactions have jumped by about 2.55%, though it should be noted this past week the trend should be described as not clear — at least on a two-week basis. If Bitcoin does repeatedly grow transactions, it may need to derive its value as a money for buying certain goods/services. As for Bitcoin’s transaction fees, the average transaction fee yesterday was $1.03 US dollars. The average transaction fee has been increasing at a rate of about 4.72% per week, but the average amount of money sent in transactions, in US dollars, is up 20.79% week over week.

And, recently, Bitcoin’s hashrate had set new highs, breaking above 100 exahashes per second (which is a lot). Yesterday, however, it fell from 98 exahashes to 67—an eye-watering 32 percent drop. But it all comes down to how the data is measured.

It is imperative to note that some analysts and investors believe that the drop in hash rate that BTC experienced prior to the crash yesterday signaled that this drop was imminent, but it is important to note that that its hash rate has posted a massive recovery overnight, which could be emblematic of an imminent price surge – assuming that there has been a short-term correlation between its hash rate and price.