Even though bitcoin just ended its first down month of the year, the network activity hit new record highs — and that's a good thing for Bitcoin and its investors.
However, Bitcoin's average daily network hashrate – which measures how much computing power the network uses to process transactions and is a key indicator of the network's health – increased for the fifth consecutive month.
Investors want the hashrate to be larger; the more energy devoted to securing the network, the broader and more decentralized the network becomes.
At the same time, Bitcoin's mining difficulty increased by about 2% for the month and reached an all-time high.
Transaction fees on Bitcoin also surged in May with the help of Ordinals , digital content on Bitcoin similar to nonfungible tokens, or NFTs, with some technical differences.
Persons:
bitcoin, Bitcoin, Reginald Smith, Bitcoin's, Smith, Michael Bloom
Organizations:
Investors, JPMorgan
Locations:
U.S