Bitcoin Hash Value and Challenging Mining Analysis Report

This report provides an overview of Bitcoin hash value and mining difficulty, while highlighting changes in the above metrics over the past year.

number 1

BTC Hash Rate Analysis Report

The hashrate is an indicator of how quickly miners analyze the blockchain industry. The hash value is an important metric for measuring the security of the Bitcoin network. The higher the hash value, the greater the protection against bad behavior such as 51% attacks. Therefore, the increase in Bitcoin hashrate means an increase in network security, which will increase the confidence of Bitcoin traders.

Figure 1 shows that Bitcoin's hashrate has increased since 2017. However, between 2017 and 2020, the hashrate has decreased three times. The first phase is 45.9% in 2018, and the second phase is 40.9% and 37.4% in 2020.

Figure 2 shows that the first drop in hashrate occurs at the end of 2018, when the price of Bitcoin fell to a 15-month low of 76%. This is the first time that the market value of Bitcoin has fallen below $ 100 billion since the arrival of the Bitcoin era in 2017, and the value of Bitcoin has also fallen below $ 4,000.

The second big drop in hashrate also occurred when Bitcoin's value fell 58.1% from its February 2020 high of $ 10,500. The recent plunge came after the mid-2020s, when Bitcoin's hashrate also fell 36.1%, with some miners scaling back or closing their transactions due to Bitcoin's difficulty. As shown in Figure 3, 2020 is undoubtedly a special year for Bitcoin, and the hashrate dipped twice on February 29 to hit its all-time high of 136TH / s. Data leaked over the past two years shows that the Bitcoin network hash value and the Bitcoin price have a similarity of 0.58.

N ° 2

In-depth analysis of BTC mining

Bitcoin mining difficulty refers to the difficulty of mining Bitcoin blocks. The stress of Bitcoin mining means that only the same number of blocks requires more computation. The hard modification directly affects only the total mining energy estimated by all hashrates in Figure 1 and corresponds to the annual block of 2016.

Figure 4 shows that the trends in hard and hashrate Bitcoin mining over the past three years are similar. As the hashrate triples, the difficulty of Bitcoin gradually increases. Generally, as the hashrate increases, the difficulty of mining Bitcoin also increases. The biggest drop in the hard mining industry in the past three years was in March 2020, when the mining problem decreased by 15.5%.

Bitcoin's most recent halving took place on May 11, 2020. Prior to the halving, miner earnings were only 12.5 bitcoins per block. Midway through mining revenue fell to 6.25 bitcoins per block, meaning the number of new bitcoins mined daily fell to 900 bitcoins. As Bitcoin provides growth has been slow since the last half of the year, some traders have argued that Bitcoin could be a potential protective device for fiat currency in the event of a financial crisis.

As shown in Figure 5, the value of Bitcoin before the halving was around $ 10,000, but at the time of the halving, the value of Bitcoin fell to $ 8,600 and then rebounded within days. . It's no surprise that the hype surrounding Bitcoin's halving has pushed the price of Bitcoin to its target of $ 10,000. Subsequent price cuts are a process of refinement as investors benefit from the hype in half.