What Death Spiral? Bitcoin Hash Rate Surges to Fresh All-Time High

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[NEWS BLOG]: What Death Spiral? Bitcoin Hash Rate Surges to Fresh All-Time High

Bitcoin Hash Rate Establishes New All-Time High

According to crypto data firm TradeBlock, Bitcoin’s network hash rate just hit a new all-time high. The company shared the image below on July 7th, showing that the seven-day moving average of the hash rate is now above 124 exahashes per second. This is over double that seen a year ago.

The hash rate is the measure of the computational power being used to secure transactions on a blockchain network. As Bitcoin.org describes the term:

“The hash rate is the measuring unit of the processing power of the Bitcoin network… When the network reached a hash rate of 10 Th/s, it meant it could make 10 trillion calculations per second.”

Investors in the space have responded to this metric with immense optimism. One trader bashed the death spiral narrative, asking where the death spiral is.

Their optimism isn’t unfounded: analysis suggests that increased Bitcoin mining activity should correspond with higher prices for BTC.

This theory was cemented with a price model from digital asset manager and investor Charles Edwards. In 2019, he came out with a model showing that Bitcoin’s price has always centered around its energy consumption in joules.

Edwards recently found that with the ongoing hash rate surge, Bitcoin is now trading around 27% under its energy value. Should the hash rate stay this high, BTC is likely to be attracted towards its energy value.


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Ripple (XRP) Is Recovering But Here Is Why It Could Reverse To $0.165

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