Although the Bitcoin (BTC) the hash rate has fallen sharply in recent weeks, head of research at Blockchain.com, Garrick Hileman, is not concerned.
Blockchain.com was founded in 2011 by deviant members of another early crypto start-up – Coinbase. It was one of the earliest providers of Bitcoin analytics, eventually expanding its services with a non-custodial wallet, exchange and crypto lending platform. The company too figured out the term ‘hash rate’ as a metric representing ‘estimates [the] number of terahashes per second that the Bitcoin network performs. “
Bitcoin’s hash rate is typically very volatile. It dropped to the lowest point of the year – 76 million TH / s, on March 25, before setting a number of record highs ever after Bitcoin’s most recent block halving. This latest trend eventually culminated in a hash rate of 161 million TH / s on September 25.
A month later, this trend reversed itself, with the hash rate dropping to 95 million TH / s on October 27. While the definitive cause remains unknown, some have suggested that the most recent decline was caused by the seasonal migration of Bitcoin miners in China.
In a Cointelegraph interview, Hileman explained that he doesn’t necessarily see the drop as a cause for concern:
“The hash rate is clearly significantly higher than tracked and halved in May. So for me not registering is a big deal. It’s an interesting data point. But we’ve seen other declines since the halving that look about the same in terms of percentage declines. So it could just be noise or something that isn’t that important, but it’s definitely something to keep an eye on. “
The hash rate has recovered slightly in recent days to 107 million TH / s. It is still lower than the year as it has entered 2020 at 111 million Th / s. While historically price and hash rate showed a strong correlation, the latest drop in hash rate is does not seem to have affected the price.