Bitcoin Hashrate and Daily Transactions: Positive Increase Throughout 2019 so far
At the beginning of December when Bitcoin was declining from 6k down below 4k, there was a lot of circulating sorties about miners struggling due to the decrease in mining profitability. At the beginning of December, Cryptocurrency media outlet “Coinspeaker” along with a couple other cryptocurrency media outlets were reporting on miners shutting down due to the lack of mining profitability.
Teuta Franjkovic of Coinspeaker stated that “at least 100,000 individual miners have shut down” and these numbers were from the Autonomous Research LLP. The Coinspekaer article by Franjkovic is linked below in the sources, and it goes on to say that “about 1.4 million servers have been unplugged since early September” of 2018.
While there has been some miner capitulation, and the stronger, larger data facilities are likely the winners to emerge from this price drop and the decrease in mining profitability, daily transactions on the Bitcoin network have been increasing steadily throughout 2018. Recently on January 9th, 2019, Bitcoin hit a record high in transactions per day, the highest recorded number of transactions per day since March 2018.
A steady increase of transactions per day on the Bitcoin network is a bullish sign in my opinion, as is signifies usage of Bitcoin whether that be in exchanges or in an application. While there were some miners shutting off due to lack of profitability, there has been a strong hash rate resurgence going into 2019 so far. While there was a steep drop off of total hash rate on the Bitcoin network from September, since January 2019 there has been positive traction.
The total hash rate chart is displayed above, and this is a two-year chart. Since March 2017, where this chart begins, Bitcoin has had a steady increase in hash rate. Only very recently as of November 2018 did the Bitcoin hash rate start to see a slight decline, followed by a very strong push in late December 2018 into January 2019.
While the hash rate drops are spicy headlines when price crashes happen, the miners will be shaken out and established as the network matures like any market naturally would act. It is important to note that right now, over 40% over transactions carried out on the Bitcoin network are on the SegWit protocol. On top of this development, the Bitcoin Lightning Network has reached over 5,200 nodes and 19,000 channels with a network capacity of over 500 BTC. The hash rate appears to be recovering from Bitcoins dive from 6k, as is likely there will be new miners looking to step in and begin to build at these discounted prices and lowered mining difficulties.
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