The hash rate of bitcoin blockchain network is one of the most important tools for determining overall miner’s interest across the globe. Hash rate essentially refers to the total computing power imparted to the network by miners. As more miners step in the network with the hopes of getting monetary rewards, increased hardware capabilities take the hash rate of the entire network up.
In the time of bull runs and increasing bitcoin price, more miners tend to step in thus pumping up the hash rate. As the bitcoin ecosystem has become healthier over the past few years, hash rate of the network has now hit its all-time high (ATH), again.
As of September 8, the hash rate hit the mammoth mark of 94, 779,758 TH/s (terra hashes per second). The unit used here is representing trillions of hashes taking place per second in the network. This shows that the network is well on its way of hitting the 100 quintillion mark if it continues its fast-growing trajectory. The increased strength shows that the position of bitcoin in terms of network security, is only getting improved with the passage of time.
The data is also significant due to the fact that just during June this year, hash rate hit its ATH while it was showing the strength of 68,631,992 TH/s. Within a matter of a few months, as developments are being made on both regulatory and technological end, hash rate has increased significantly compared to its growth just a few years ago.
Bitcoin has been rallying in terms of its price since April of this year. Although it has largely consolidated around the $10,000 mark since mid-July, the digital asset still has risen quite sharply as compared to the $4,000s of early April. During April, the hash rate of the network was floating around the mark of 40 and 50 quintillion but as the price rose, it has now come in the range 90s.
The price correlation becomes evident with miners’ interest in the network. As bitcoin’s price rises up, the incentive for miners also becomes more significant in terms of the rewards. Currently, 12.5 newly-minted bitcoins are given as a reward to the miner that solves the cryptographic puzzle and mines the new block in the network.
With the reward amount staying fixed in terms of BTC units, an increase in its price relative to the USD lures more miners to set up a node, contribute their hash power to the network and get chances to gain monetary rewards.
As the price goes down, so does the incentive for miners. With fewer miners in the network,security and strength of the blockchain go down. Since fewer miners are now contributing hash power to the network, it becomes relatively easier for hackers to do a 51% attack because taking control of 51% hash power of the network becomes relatively easy.
Overall, the currently increased hash rate is showing that the sentiment about bitcoin is becoming more positive worldwide. Attention is also being given to regulatory aspects of bitcoin, many thanks to the attention brought by Libra. As the chances of a global recession loom with investor trust trembling in the market, a flight to the store of value assets like bitcoin and gold is expected to increase. With this, the price is also expected to rise up.