Tuesday, May 17, 2022

Bitcoin hashrate crashes by 40%: Is BTC price going to collapse?

The Takeaway:

Bitcoin network's hash rate suddenly crashes down by 40%. The hash rate went from 166.6PH/S to 57.7PH/S. The hash rate of the network was a record high all throughout the summer. Better hashrate represents a more secure network and a high competition among miners to validate blocks.

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Blockchain data shows that the Bitcoin network’s hash rate crashed from 166.6PH/S to 57.7PH/S. The reason for such a massive drop remains unknown. Last week Bitcoin hash rate reached a historic milestone after it passed 102 quintillion hashes. 

Throughout the summer, Bitcoin hash rate has been very strong as it continued to reach all-time highs. Hashrate of a cryptocurrency is a way to measure the number of calculations that a given network can perform each second. The higher hash rate indicates a higher competition among the miners to validate new blocks. 

The higher hashrate also means that a network is more secure, and it would require huge resources to pull off a 51% attack. Many experts pointed at the higher hash rate of the network to predict a bullish bitcoin run which means that a lower hash rate could lead to a market crash. In 2018, Crypto analyst Max Keiser predicted a bullish run as he wrote price follows hashrate and hashrate continues its nine-year bull. 

In November 2017 something similar happened as bitcoin saw a sudden crash in hashrate of more than 50%. After the crash price of the leading cryptocurrency saw a dip and transaction processing time also slowed down.

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Glenn Harper
Glenn Harper
Glenn has only two interests: Bitcoin and Aviation. After completing his graduation from San Diego State University in 2006, Glenn started working in the airlines and aviation industry. Aviation was his only passion before he came to know about bitcoin in 2012 after which he decided to dedicate 8 hours of his day for aviation and 8 hours for learning and writing about bitcoin and the technology behind it. Glenn lives with his wife and a 7-year-old son who mines ethereum on his computer and is also quite passionate about cryptocurrencies.

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