Bitcoin’s hash rate reached new all-time highs this month prompting well-known industry figures to renew calls for future price increases.
KEISER: ‘PRICE FOLLOWS HASHRATE’
Hashrate refers to the total computing power of the Bitcoin network, and its growth is a solid indicator that despite low prices, more and more parties are choosing to invest in it.
After gaining fifteen percent through June, the number reached its highest level ever.
“Price follows hashrate,” former Wall Street trader and journalist Max Keiser commented in light of the news.
Keiser added that “price follows hashrate” has been his “mantra” since bitcoin was at $3 USD.
“If you don’t understand this then you don’t understand Bitcoin,” he added.
Bitcoin’s latest network performance continues a trend, which has seen prices contrast with increasingly robust technical fundamentals.
In addition to hash rate, transaction fees and mempool size have also improved, due in part to the increasing popularity of Segregated Witness (‘SegWit’) support.
SegWit’s presence reached highs of its own in May of this year continuing to hover at just under forty percent of all Bitcoin transactions.
A separate series of victories has in the meantime come from the Lightning Network. In its short six-month history, Lightning has seen its popularity grow rapidly, its Bitcoin mainnet implementation from April onwards hosting more nodes than the entire Bitcoin Cash network.
Those numbers have since grown further, the number of active nodes currently numbering around 2250 with an overall network capacity in USD terms of just over $150,000.
In short, the longer term benefits of using the network to send bitcoin are becoming ever more apparent.
In conjunction with other innovations, anonymity, a quality long disproven about the cryptocurrency, has the potential to become reality for everyday users who use the technology.