By Hassan Mehmood (Saudi Arabia)
The hash rate for Bitcoin is picking up nicely since the decline in the capacity of the miners to mine and strengthen the security of the cryptocurrency. A few months back, the hash rate for the crypto was dwindling pretty nastily as many miners were leaving this paradigm for good, relocating their focus and energy towards other more promising aspects of the crypto market.
But the month of October has seen a consistent rise in the hash rate of Bitcoin, and it is not arbitrary at all, as there are certain pointers depicting this very precise outcome.
GPU Prices are Declining
First of all, the prices of GPUs are declining rapidly because of the lost interest of the miners and the rapid shift of many cryptocurrencies out there from proof of work to proof of stake consensus protocol; the same has happened with Ether which is why people have been gradually dumping their mining rigs into the open market.
But this thing has also boosted restocking for the Bitcoin miners as they are buying these rigs and graphics units at a pretty cheap rate and fulfilling their destiny of continuing their mining operation, which has bumped the hash rate of Bitcoin.
When China imposed a severe blackout for all mining activities taking place on its land, the Chinese miners were forced to evict and relocate to other friendly territories.
There are many countries out there that don’t have this much aggressive or challenged opinion for cryptocurrencies such as Bitcoin and mining, and these countries asked these miners to relocate there. Some of these countries are Kazakhstan, Germany, and Canada.
Apart from all that, one very specific and significant pointer that marks the success of mining activity and its continuity is the shift of Ether’s proof of work consensus protocol to proof of stake consensus which literally removes the need for having an elaborative computing-based mining function and replaces it with the need to stake crypto for mining purposes.
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