According to data from Blockchain.com, Bitcoin’s (BTC) hash rate recorded the biggest increase of the year on Saturday, from 188.40 exahash per second (EH/s) to an all-time high of 248.11 EH/s in just one day. out to . Despite the value falling to 209.63 EH/s on Sunday, the world’s leading blockchain network remains highly secure.
In blockchain using the proof-of-work consensus algorithm, hash rate is a metric that measures blockchain processing power. For the integrity of the decentralized system to exist, complex mathematical calculations must be performed quickly. As Bitcoin is mined, verified transaction blocks are given a new hash and added to the nlockchain. In summary, the mathematical processing power of the sum of all devices in the Bitcoin network is called hash rate.
The higher the hash rate, the more secure the network because more computing power is required to carry out a successful attack, such as processing fraudulent transactions or reporting that the same Bitcoin has been used twice. Moreover, the increase in the Bitcoin hash rate indirectly reveals the increased interest in Bitcoin mining.
An increasing hash rate, coupled with the record high Bitcoin mining difficulty (a measure of how hard it is to find new blocks), is creating a bullish signal that miners are increasingly willing to put long-term capital into the Bitcoin infrastructure.
Bitcoin mining difficulty is also expected to increase by another 3.24% this week, as data from BTC.com shows.
What Is The Bitcoin Price?
Bitcoin’s network took an interesting journey last year following China’s crackdown on the mining industry, which caused the hash rate to drop as low as 68 EH/s in July, raising concerns about the industry’s long-term prospects.
However, with several major Bitcoin mining operators relocating to other countries such as the USA, Russia, and Kazakhstan, Bitcoin’s hash rate has seen a notable recovery afterward.
Besides, the recent increase in hash rate came amid negative macro sentiments in global markets such as rising inflation and geopolitical tensions. US inflation hit a 40-year high last week, causing investors to divest risky assets, including cryptocurrencies. The continuation of talks on a possible military invasion of Ukraine by Russia does not help the market either.
After the White House announced last week that Russia could launch a massive attack on Ukraine “mainly at any time”, the price of Bitcoin dropped almost 4%, while leading stock indexes fell between 1.43% and 2.78%.
The leading cryptocurrency is trading at $42,200, down 0.3% in the last 24-hour period. However, the fundamentals of the network continue to strengthen, such as the exploding hash rate.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.