Stack Funds – Bitcoin Hash Rate Stays Strong In Spite of Heavy Downpours in China
As per a report published by Stack Funds yesterday, the hash rate of Bitcoin network remains strong and largely immune to the rainy season and blackouts in China. The argument is supported by Coin Metrics data.
The 7-day average Bitcoin (BTC) hash rate has stood above 120 Terahashes (TH/s) since mid-August in spite of threat of floods and electricity shortages faced by miners in the country.
Glassnode data also indicates that the hashrate attained its peak on September 8, breaching the 150 TH/s mark for the first occasion in the history of Bitcoin.
Stack Funds finished the report by stating:
“Hash rates remained strong and could continue upward after the rainy season. Moving forward, should price stabilize above $10,500 […] a bullish continuation can be expected.”
Hashrate is a main indicator of robustness and safety of the Bitcoin network. China commands about 65% of mining across the globe and the surplus rainfall during the monsoon season can be an advantage as well as a disadvantage. While surplus rain could bring down the cost of electricity generated from hydroelectric sources, mining facilities could be affected due to waterlogging.
Specifically, mining facilities in the Sichuan region faces huge risk due to torrential downpours. At the same time, they can realize better profits due to availability of low cost power, eventually leading to an increase in overall hash rate.
At the time of writing this article, Bitcoin (BTC) is trading at $10,263.55, down 0.8% in the past 24 hours.