To simply put it, mining hashrate is used to measure the amount of computing power everyone worldwide contributes to mine Bitcoin. The security of miners? network is based on their computer processing power. Likewise, miners? computer processing power records all of the Bitcoin transactions and they receive rewards in Bitcoin for their efforts.
A look at the Total Hash Rate (TH/s) chart provided by blockchain.com shows that BTC?s 7-day average hash rate passed 129 TH/s on August 16 and it is the first time of recording such a level as BTC price is still encountering a barrier at $12,000.
On the same day, the aggregate BTC value of all transaction fees paid to miners dropped to 108.026 BTC (7 Day Average). Network difficulty value, which is a relative measure of the difficulty involved in mining a new block for the blockchain, has been between 16.848t and 16.908t from August 3 to August 16.
The new lifetime high in its hashrate was attained as Bitcoin is still meeting resistance on its attempts to rise above $12k. The new record comes following a somewhat 2-week stagnant growth in hash rate. The past lifetime high which is 126.941 TH/s was attained on July 29, 2020.
A higher average hash rate shows miners? strong confidence in profitability; hence, there is a general robust correlation between hashrate and price. This month, Bitcoin has been able to rise above $12k price level twice prior to a decline back into the same range around mid-$11k. Over the last weekend, it could not clear the resistance and stayed between $11.7k and $11.9k range. Bitcoin and gold may demonstrate a stronger correlation this year as numerous investors look out for other options outside conventional finance amid the responses and approaches of the Federal Reserve and other central banks towards the pandemic. In recent times, gold has recorded a rise in price above $2k per ounce while Bitcoin is perhaps preparing for its own bull run.