Bitcoin hash rate, which is widely looked to as a sign of Bitcoin’s network strength is set to create yet another record.
September 09, 2019, | AtoZ Markets - Bitcoin hash rate has surpassed 94 quintillion hashes per second, according to the data published on Sunday by the monitoring resource Blockchain. If this sharp increase continues, Bitcoin will reach an all-time high of 100 quintillion for the very first time in the history of the flagship cryptocurrency.
Bitcoin network hash rate. Source: Blockchain
Before making this recent surge that started in January, Bitcoin hash rate spent six months in recession during the second half of 2018.
The benefits of Bitcoin hash rate surge
Hash rate or hashing refers to the measuring unit of the processing power of the Bitcoin network. This very useful feature that solves complex mathematical equations secures and makes the network profitable.
The increase of Bitcoin hash rate coincides with Bitcoin price, which has been rising this year. The price is currently trading at $10,200, up from the lows of $3,500 in December 2018. According to one commentator, RT’s Max Keiser, Bitcoin’s price usually follows increases in hash rate, with hash rate lows triggering the start of bull markets.
Hence, it’s reasonable to conclude that the increase in hash rate could also be related to the rise in the price of Bitcoin.
What is more, the rise in Bitcoin hash rate also means that the network is more secure and less susceptible to 51-percent attacks. The more complex math equations that are being calculated simultaneously, the more miners you’d need to launch an attack.
Increase in Bitcoin hash rate will come at fiat’s expense
Keiser further added that the impressive performance of Bitcoin will, in turn, create difficulties for fiat currency.
“#Bitcoin hash set to break 100 (quintillion h/s). This will start to become a problem for fiat as data centers dedicated to maintaining fiat systems are pulled into the BTC black hole of true value,” he tweeted on September 8.
It is worth mentioning that the increase in Bitcoin’s hash rate doesn’t make transaction time faster. Currently, block confirmations still take about around 10 minutes. In addition, Bitcoin’s hash rate surpasses that of Ethereum which reached a hash rate of 295 trillion hashed per second on August 9, 2018. However, in November 2018, the hash rates declined and is currently sitting at 176 trillion hashes per second (h/s).
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