Bitcoin’s hash rate recovers following halving event
- Following the May 11 halving, Bitcoin’s hash rate has been dropping in a downtrend.
- The hash rate has been recovering as new miners are increasingly entering the market after the halving event.
- Users are securing the Bitcoin network again and are trying to improve the entire ecosystem.
Bitcoin’s hash rate has been dropping in a downtrend since the third halving event that took place on May 11, 2020. The main issue that surrounded the event was that rewards were reduced by 50% and mining difficulty remained the same. Now that the difficulty has been adjusted for miners, they are entering the BTC network once again.
In the last few days, Bitcoin’s hash rate has been recovering as new miners are increasingly entering the market after the halving event. Users are securing the Bitcoin network again and are trying to improve the entire ecosystem.
For the uninitiated, Bitcoin experiences a halving event once in about four years and it reduces the new issuance of the crypto by half. If the prices are stable, miners lose 50% of their mining rewards. They do not always have to sell their coins to remain profitable, but the threshold to stay in the market certainly reduces following the halving event. The recovery of the BTC hash rate was possible because of Bitcoin’s difficulty falling for the second consecutive time in a row - 6% down on May 20th and 9.29% down on April 4th.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
