I know the purists and tech “geeks” (this is a complement not a pejorative) will insist it does. I’m dubious personally. I think it’s much more complex. Quants want formulas; the world is sometimes a bit messier.
From Seeking Alpha: “Hash Rate continues to increase to new highs because fo increased usage and computing capabilities.
Miners will only operate at profitable levels and therefore provide a price floor to Bitcoin.
There is a feedback loop that perpetuates price higher with increased price, demand and computing power.
The hash rate for Bitcoin, the number of estimated attempts to solve problems by all miners, continues to increase hitting new highs. Without the miners working these complex problems, Bitcoin transactions would come to a screeching halt. But, as anyone who has read just about anything on Bitcoin mining knows, the task is expensive; the cost to run one of these mining computers puts the electricity usage at an aluminum smelting facility to shame. In fact, it is virtually unprofitable at the current price of Bitcoin (BTC-USD). And, yet, miners continue to mine Bitcoin (and every other cryptocurrency) and are pushing new levels for their accomplished mathematic equations”.