Reasons Behind the Surge In Hash Rate Of Ethereum Mining

Reasons Behind the Surge In Hash Rate Of Ethereum Mining

Hash rate is a measurement unit for the amount of work a computer system performs while mining an encrypted data set. In other words, it measures how many proof-of-work operations are being done per second.For example, Ethash is the proof of work algorithm of Ethereum and is also used by other cryptocurrencies such as Ethereum Classic and ZCash. Ethash has been designed to be GPU-friendly to make mining decentralized and achieve ASIC resistance. It means that anyone with a desktop or laptop computer can use their spare CPU power for mining. Without worrying about making huge investments like they would need to do if they were trying to mine Bitcoin with an ASIC chip (a specialized piece of hardware).Visit The Official trading platform for more information on bitcoin trading

Hash Rate Of Ethereum And Its Effect

The change in the hash rate of Ethereum mining is a fascinating phenomenon for many cryptocurrency enthusiasts. Still, it is also a clear indication that the cryptocurrency market is seeing a rise in popularity, and there is no shortage of people who want to mine Ethereum. Currently, the hash rate of Ethereum is spiking high at 23.70 TH/s. The increase is so significant that the network’s difficulty level (314.27T) had to be gradually adjusted to prevent it from breaking as new miners rushed in. In the recent few months, Ethereum as a whole has shown significant growth in terms of hash rate and difficulty level.

Why Is Ethereum Mining Gaining Popularity?

While the average output price of mining Ethereum has not fluctuated too much, several factors can be identified as potential reasons behind the rise in hash rate. The more likely reason Ethereum mining is seeing a sudden rise in popularity would be the increase in the price of cryptocurrencies over the past few months. “In other words, more people are willing to spend money on buying graphics cards to mine Ethereum.” For you, some of the best reasons to understand more about Ethereum mining are detailed here.

Increasing Mining Difficulty

The first reason for the sudden increase in difficulty is that Ethereum is a relatively new cryptocurrency, so it is understandable for its hash rate to increase a little bit. However, many people have pointed out that this conclusion does not hold water. There are clear indications of the difficulty being maintained at a relatively stable level only since December 2017.

Ethereum Price Increase

As everyone knows, Ethereum’s (ETH) price fluctuates, ETH’s continuous rise has been considered one of the reasons behind the increased popularity of Ethereum. Furthermore, the price increase also makes people more confident to apply for miner hardware, leading to more miners in the blockchain network.

New Hardware In The Market

As stated early, Ethereum is ASIC resistant, but miners are always looking for new ways to make their ETH mining profitable. You can significantly improve your mining speed with newer and better hardware.

Growing Popularity And Increasing Awareness

With the trading price of ETH increasing in all markets, a growing number of people, including government officials, started appreciating the value of the digital currency and started investing in it. A few days ago, Venezuela announced that they launched Petro (a cryptocurrency) to escape US sanctions. In India, Reserve Bank also tried to introduce their digital token but backed out from this decision later because of public criticism against same.

More People Are Intrigued By Mining

While some miners moved their attention to other coins with more profitable mining options, it is also true that the number of new miners joining the network has increased dramatically. Furthermore, it can be said that those who were new to Ethereum mining have started to see it as a form of investment too, which has led to them buying better hardware for running more efficient operations.

As of 2022, the price of Ethereum is around 2733 US dollars, with a market cap of over 320 billion. Ethereum is one of the most promising cryptocurrencies out there, especially given its ability to introduce intelligent contracts without an additional layer of complexity for users. As a result, many people have started identifying potential for their investments, and Ethereum’s price has steadily increased.

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