Bitcoin computing power hits a new high, where will the price go in the future?

Bitcoin, a digital currency that has attracted much attention in recent years, has been constantly breaking historical records with its full network computing power. Many people have begun to pay attention to the future direction of its price. The price of Bitcoin is not only a reflection of the market supply and demand relationship, but also the result of the interweaving of multiple factors such as technological progress, policy trends, and market sentiment. As the computing power of the Bitcoin network continues to rise, how the price will change has become a hot topic among investors and market observers.

First of all, we need to understand the concept of Bitcoin's full network computing power. The Bitcoin network relies on the computing power of miners to maintain the security of the blockchain and the validity of transactions. The increase in computing power means that more miners will participate in Bitcoin mining, the security of the network will be enhanced, and it also means that the scarcity of Bitcoin will be further improved. According to the latest data, the computing power of the Bitcoin network has exceeded tens of billions of hash operations per second. The increase in this data not only shows the enthusiasm of miners, but also reflects the confidence in the future value of Bitcoin.

Against the background of rising computing power, the market's expectations for Bitcoin prices are also constantly changing. Many analysts believe that the increase in computing power will drive the price of Bitcoin higher because it means that it is more difficult to mine Bitcoin, which slows down the rate at which new Bitcoins are produced. This scarcity is called "supply constraints" in economics. For example, historically, whenever Bitcoin's total network computing power reaches a new high, its price tends to show a significant upward trend. Data shows that in 2020 and 2021, after a wave of increases in Bitcoin's total network computing power, its price has doubled in just a few months.

Of course, the increase in computing power is not the only factor in the rise in Bitcoin prices. Market sentiment, policy environment, technological progress, etc. are all affecting Bitcoin's price trend. For example, in 2021, as more and more institutional investors entered the Bitcoin market, Bitcoin prices soared. Investments from companies such as Tesla and MicroStrategy have significantly increased Bitcoin's market acceptance, further attracting more individual investors to participate.

In such a market environment, investors need to be cautious. Although Bitcoin's total network computing power continues to set new highs, investment cannot rely solely on this indicator. Understanding the overall dynamics of the market, grasping policy trends, and paying attention to technological progress are all important factors that investors need to consider when investing in Bitcoin. At the same time, diversification of investments and risk control are also basic principles that investors need to follow.

With the continuous advancement of technology, the Bitcoin ecosystem is also gradually improving. For example, the emergence of the Lightning Network provides a faster and cheaper solution for Bitcoin transactions, enhancing the feasibility of Bitcoin as a means of payment. The development of this technology will not only help improve the use scenarios of Bitcoin, but may also boost the price of Bitcoin in the future.

On the other hand, with the global emphasis on renewable energy, more and more Bitcoin miners are beginning to choose to use green energy for mining. This trend not only reduces the impact of Bitcoin mining on the environment, but may also increase the social acceptance of Bitcoin. After all, environmental issues have become an important issue worldwide. How to balance ecological protection while pursuing economic benefits has become a challenge that investors and miners need to face together.

In the future market, the price trend of Bitcoin will not only depend on the changes in computing power, but also be subject to the influence of the ecology and external environment of the entire digital currency market. As more and more countries and regions gradually clarify their regulatory policies on digital currencies, the stability of the market will increase. At the same time, the continuous innovation of technology will also provide more possibilities for the future of Bitcoin.

In short, the record high computing power of the entire Bitcoin network provides a basis for its price increase, but the complexity of the market determines that the future trend of prices will be diversified. As an investor, only by being rational, paying attention to market dynamics, and judging the situation can you seize your own wealth opportunities in this market full of opportunities and challenges. I hope that every participant can find their most suitable position in this wave of digital currency, seize opportunities, avoid risks, and realize wealth appreciation.

In this rapidly changing market, investors need to continue to learn and adjust their strategies to adapt to market changes. Whether it is Bitcoin or other digital currencies, it is very important to understand the technology, market mechanism and policy environment behind them. Only in this way can you succeed in future investments.

Regardless of the future price trend of Bitcoin, it has become an indispensable part of the global financial market. As an emerging asset class, the rise of Bitcoin has not only changed the way people invest, but also brought profound impacts to the traditional financial system. In the future digital economy, Bitcoin will continue to play an important role, attracting more and more investors' attention and participation.

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According to Decrypt
September 8, data from blockchain analysis company Glassnode showed that Bitcoin's total network computing power hit a new high. Computing power is a measure of the computing processing power of the Bitcoin blockchain. In order to maintain the integrity of this decentralized system, miners must perform complex mathematical calculations quickly. During the Bitcoin mining process, the verified transaction block will receive a new hash value and be added to the blockchain.

Bitcoin's computing power is on the rise. Image source: Glassnode.

Bitcoin's computing power has now exceeded 140 EH/s, an increase of nearly 10% from the 129 EH/s reached last month.

2020 has been a positive year for Bitcoin, with Bitcoin's total network computing power reaching 105
EH/s in the first week of January this year. However, computing power has also experienced two declines, falling to lows of 95 EH/s and 91 EH/s on March 16 and May 4, 2020, respectively.

The impact of computing power on Bitcoin prices

When Bitcoin computing power rises, people usually discuss whether Bitcoin prices will rise accordingly. This is because miners are expected to respond to the increase in hashrate by holding onto their coins rather than mining new ones. This, in turn, will give Bitcoin momentum, pushing up the cryptocurrency's price.

However, this correlation doesn't always work out. This chart from BitInfoCharts shows that Bitcoin's price can fluctuate wildly despite little change in the hashrate. Ingo
Fiedler, co-founder of Blockchain
Research Lab, told Decrypt that other factors such as lending infrastructure, market sentiment, and competition among miners can all have an impact on Bitcoin's hashrate. He said:

"The maturing lending market has enabled miners to borrow more funds at lower rates to cover mining expenses and hardware equipment losses. This has been driven by the rise in Bitcoin prices over the past month and generally more optimistic market sentiment."

"This additional financing capacity expands the space for miners to adopt strategies in the competition to gain market share." He went on to add.

Hashrate growth is a boon for blockchain security. The higher the hashrate of the Bitcoin network, the more secure the blockchain. If someone were to try to disrupt or attack the chain, they would need to control at least 51% of the global computing power, and as computing power rises, this becomes increasingly unlikely.

However, there are also risks in the market. The volatility of Bitcoin prices is one of its major characteristics. While investors are chasing profits, they also face huge risks. In May 2021, the price of Bitcoin once fell below $30,000 due to the Chinese government's crackdown on cryptocurrency mining and the strengthening of cryptocurrency regulation worldwide. This fluctuation has caused huge losses to many investors and has also made people begin to re-examine the investment value of Bitcoin.