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Many Bitcoin (BTC) miners have just gone online. Bitcoin’s hash rate, or the total computing power of the Bitcoin blockchain, just soared to 439 exahashes per second (EH/s). Moreover, the number of transactions processed by the Bitcoin blockchain in one day has exceeded 682,000, as more than 300,000 sequence numbers have been recorded on the Bitcoin blockchain.
These milestones demonstrate the strength and stability of the network, as well as the growing adoption of Bitcoin for various use cases, while the banking sector in the United States is falling apart.
Bitcoin’s hash rate, a measure of the computing power designed to secure the blockchain, has hit an all-time high, signaling increased confidence in the network’s security. The hash rate is an important indicator of network health, as a higher hash rate means more miners are involved, making the network more resilient to attacks.
The increase in hash rate reflects the growing investment in mining infrastructure, despite the fluctuations in the price of bitcoin. More and more territories and regions around the world are engaged in bitcoin mining, while the number of renewable energy sources is increasing, which reduces concerns about centralization or environmental impact that have prevented bitcoin mining in the past.
However, as Denver Bitcoin, a well-known bitcoin miner at Upstream Data Inc, points out, the hash rate spike may not be long-lived. It’s important to “watch the average time from 1500 to 5000 blocks to get an idea of the true hash rate,” he shared in a tweet:
Sometimes 20-100 blocks get found in quick succession, “current hashrate” readout on websites will show crazy number like 450Eh/s.
Always watch 1500-block to 5k-block avg time to get an understanding of true hashrate.
All based on blocktimes there’s no query of “total hashrate.” pic.twitter.com/ijgNsrwzIX
— Adam O (@denverbitcoin) May 2, 2023
The hash rate may temporarily increase, in part due to the resurgence in the popularity of bitcoin ordinals. Bitcoin serial numbers are unique non-fungible tokens (NFTs) created on the Bitcoin network, each representing a different position on the Bitcoin block chain. Each serial number is “written” in Satoshi (Bitcoin’s smallest denomination), and holders can verify digital ownership of their Satoshi.
Ordinals have gained popularity among collectors, investors, and enthusiasts, offering a new way to interact with the Bitcoin ecosystem. Bitcoin ordinal aficionado Dan Held, for example, shares that altcoin advocates are interacting with Bitcoin for the first time through their creation.
The number of inscriptions in 24 hours on May 1 exceeded 350,000, and the total number of serial numbers exceeded 3 million. Considering that each ordinal entry also counts as a transaction, the number of bitcoin transactions has also skyrocketed.
As more people buy, sell and exchange Bitcoin ordinals, the number of daily transactions on the network has increased significantly to 682,000. The mempool, or “waiting area” for incoming transactions before they are confirmed, is currently very busy. The cheapest transaction fee is 8 satoshi/vB, or around $0.30, which is way above its 1 sat/vB low. If users want to send money to wallets on the underlying Bitcoin chain, the costs will be significantly higher than usual due to the growing number of ordinals.
Related: fixing Bitcoin Ordinals community debate after inscription validation error
For some, Bitcoin ordinals offer a different role for the network that goes beyond its function as a store of value and medium of exchange. For others, like Dr. Adam Back, number 76 on Cointelegraph’s Top 100, serial numbers are useless.