Bitcoin hash rate doubles despite BTC trading below $9,000. Myth busted?

Bitcoin hash rate going down is a sight anyone would like to see given the fact that hash rate drops are soon followed by price drops.

Coin Dance is a data monitoring service which confirmed that the forty (40%) hash rate drop was no joke, providing with statistics to back up the allegations.

Bitcoin Hash rate saw a drastic reduction in its price turning the hash rate back on its feet from one hundred and four (104) quintillion hashes per second (h/s) to fifty-seven quintillion hashes per second (h/s) on September 23.

Bitcoin hash rate doubles despite BTC trading below $9,000. Myth busted?

Bitcoin hash rate chart by blockchain.com

The traders were conscious about how things would turn out with the hash rate taking a roller coaster ride to the lower ends of the chart. Disbelief in Bitcoin’s future started to rise as the price for the security itself dropped down fifteen percent (15%) the next day.

It seemed as if the whole Bitcoin community would crumble as staunch believers were exiting the market, shutting down nodes and starting to preach about a new cryptocurrency but the crises was averted when the Bitcoin hash rate went up again with the numbers reaching one hundred and fourteen (114) quintillion hashes per second which are not quite off from the all-time high of one hundred and twenty-one (121) quintillion hashes per second.

Bitcoin hash rate myth debunked

Hash rate, in general, isn’t an accurate measurement of the computational power that a network is being provided. The data obtained from such tests is an estimate of what is going on as several factors affect the statistical data.

Factor such as slow block times can cause the reading to either rise to the top or sink to the bottom of the graphs and thus produce erroneous results when viewed. This week’s fake crash can be regarded as the product of such an analytical error.

Provided that the latest statistics are true, we can safely say that the hash rate has little to do with the trading volume as the hash rate is moving towards the all-time high mark while the past seven days have seen the trading volume run dry.