Bitcoin (BTC) surpassed another milestone on Thursday, August 8, because world’s leading cryptocurrency’s hash rate hit 80?quintillion the very first time.
This news comes on a good week for BTC, which saw the coin’s value top $12,000 USD twice in 72 hrs amid fears that your chosen global recession is above.
What is Hash Rate?
In its basic form, hash rate is a step of the processing power of the Bitcoin network. When Bitcoins are mined, a tricky mathematical puzzle needs to be solved before mined coins could very well be added to the blockchain. The hash rate is a measure approaches many times the network can effort to complete this puzzle every second.?The greater the hash rate belonging to the network, the greater the number of miners could be needed to commit an attack on the network. Essentially, hash rates are a measure of Bitcoin network security.
However, since the Bitcoin network is increasing in computing power, doesn’t imply that the coin are generally mined any faster. Bitcoin’s network is designed to mine a block about every Half an hour, and this rates are maintained by adjusting the mining difficulty (how hard it really is to solve the mathematical puzzles) in line with the overall hash rate from the network.
Over Bitcoin’s 10-year lifespan, the network has expanded so powerful it can easily compute quintillions of hashes?every second. For simplicity, 80 quintillion hashes per second is written as 80 EH/s.
Cause for Concern?
While this could sound like more great news for BTC, there are a slight reason to be concerned when it comes to ownership of hash power. Research by academics from?Princeton and Florida International Universities from October 2019 shows that 74% of BTC’s hash power is controlled by mining pools that happens to be operated by companies or individuals in China. Theoretically, this China significant power over the Bitcoin network. This great deal of centralized network power in China exposes BTC to rampant censorship together with other potentially damaging attacks.
What Can this Mean for Investors?
Naturally, investors may have more confidence in the network which is more secure, as a result today’s news will give rise to the overall bullish attitude investors have towards BTC at the minute. It’s notable that in BTC’s all-time price peak in December 2019, its hash rate was around 10 EH/s. This spiked to 55 EH/s in October 2019 before falling sharply to a number exceeding 35?EH/s by the end of the year. BTC’s hash rate has enjoyed an upsurge in 2019, as seen by today’s news, to coincide because of its recent resurgence in value.