We all heard the story about Bitcoin and how people invested in this cryptocurrency since it started way back in 2009. When a group of people established Bitcoin, the currency grew to become a company of its own and dominated the tech stratosphere with its innovative technology that aims to democratize financial systems around the world. The problem, however, lies within the security of this newfound institution.
Bitcoin’s security measures were not very potent. With the struggle to protect the data and the information of its users, the company started to process more algorithms and increased hash rates over time. According to the data collected from monitoring research blockchain, on July 20, Bitcoin’s total hash rate reached a peak of 79 tera hashes per second (TH/s). A whopping increase of 14 tera hashes within a span of 30 days. This has broken multiple records in recent weeks and months.
After hitting the 79 tera hash mark over the weekend, the figure subsided. The most recent data collected was on Sunday, resulted in a total hash rate of 61.7 trillion hash (TH/s). The results still pointing to an upward trend, with regular fluctuations.
Despite the sudden pause of Bitcoins monetary value, which fell off in a price of 13,800 two weeks ago, it was still able to reach this record.
Since regulation has placed pressure on the market — which caused it to dip as low as $9,125 — it failed to weigh the performance of the Bitcoin – network. “Bitcoin’s transaction fee also remain low, despite fluctuations in price and volume.”
Bitcoin mining is the future of crypto
While Bitcoin’s mining performance took a ninety-degree turn since the bottom of the bull market in December 2018, it will now gradually revolve around the May 2020 block reward halving. The conclusion was made by the Filb Filb, a new trader-analysis.
Telegram network stated that Bitcoin price would most likely be influenced more by miners over the next few years. Because of the halving of block rewards, new Bitcoin miners will be able to see per block transaction decrease from 12.5 BTC to 6.25 BTC.
This will affect the movement of Bitcoin’s cryptocurrency value, but the fluctuation will not lead to a negative result since it has been on the upward trend recently, according to some analytical company.
Although Bitcoin had a major pullback on July 16, which was according to Alex Krüger, a global market analyst, may have been contributed by the criticism of the United States President Donald Trump and State Secretary Mnuchin.
As stated by Alex Krüger: “When the U.S. government attacks bitcoin directly, saying it’s exploited to support billions of dollars of illicit activity, based on thin air, and how they are concerned about its speculative nature, and the crypto echo chamber roars ‘bullish,’ it probably is a good time to short. There is nothing bullish in antagonizing with the largest gorilla in the room. Most U.S. politicians, unfortunately, seem to be convinced crypto is the realm of money laundering and drug trafficking. This needs to change. I bet people use Paypal or Venmo more than bitcoin to pay for illicit activities. Also, bet most criminals don’t even know what Monero is, yet they all heard about the dollar. Unfortunately, perception trumps facts.”
Nevertheless despite being under the pullback Bitcoin was able to go above and over its current status, topping the Hash Rates for Jul 20, recovering back to the top in a span of 4 days, which is remarkably fast due to the industries compete with other cryptocurrency companies.
In conclusion, Bitcoin may be, or may not be the best choice to invest, since cryptocurrency is starting to become a thing nowadays. But as shown by its recent performance, Bitcoin may grow into one of the leading companies when it comes to cryptocurrency. If the trend continues regardless of the downward spiral that it has been experiencing in the past few weeks, with the pullover and the monetary value decrease, the upward spike of its network will eventually make it into a more robust industry in the near future.