Bitcoin is marking exceptionally high hash rate activity. But BTC prices are not keeping up with it. What could be the reason behind the growing dislocation?
The analysis of a 14-day moving average shows that the BTC hash rates are naturally higher for a reason. The network speed and hardware support needed to mine on the BTC blockchain reached a genuine high of 838 exahashes per second. Meanwhile, it spiked 974 EH/s on a 24-hour time frame.
According to analytics’ tribe, it is the second highest level reached ever! The difficulty adjustment of Bitcoin recalibrates after every 2016 blocks. That comes down to a 2-day time frame.
The hash rate also maintains a 10-minute block interval. In that time, the BTC hash rate can increase by more than 3%, hence marking a new peak.
The stark difference between the hash rate and the price can be easily observed. Currently, Bitcoin’s price is 25% less than it’s all time high value. However, the mining cost is rising like anything.
But miners need to make a profit at all costs. That means they have to cover the operating cost with capital expenditures as well.
Best Revenue Channels for Miners
Currently, there are two ways of earning revenue. Firstly, you may earn block rewards. Secondly, you can make an earning through transaction fees.
The block rewards are high compared to average rates. It is 3.125 BTC for each bloc. Meanwhile, transaction fees remain low. It comes down to only 4 BTC a day or $377,634.
Investors’ Take from The Event
The subsidy against Bitcoin blocks keeps lowering every four years. If BTC wants to keep it from falling further, the transaction activities should start spiking soon. It will be critical to retain fair mining incentives.
