With just three days into 2022 and bitcoin has set new record highs with its hash rate figures sending a ripple of excitement across the crypto market. Hashrate is the amount of computational power used by miners. It’s dedicated to the production of new bitcoins and the validation of new transactions on the BTC network.
Experts say higher hash rates reflect a stronger and more secure network. This makes it difficult for hackers to execute an attack and gain control. However, it should be noted that its upkeep is not easy. The intensive machinery is expensive. It requires “high technical knowledge”. Thus, it consumers a lot of energy.
According to data from Glassnode, hash rates spiked to 201 exahashes on January 1. which surpassed the April 2021 levels. BTC’s hash rate was hit because of China’s crackdown on crypto miners. Glassnode highlighted that the world’s most popular cryptocurrency recorded a new high of 207.53 EH/s.
How Does Hashrates Work?
Hashrate is measured through the computational power during mining. In other words, it is the speed of mining – measured in units of hash or second. Miners prefer to use machines with a high hash power as its highly efficient and can process heavy data in a single second.
It should be noted that every hash rate is random and complex. It takes much energy to power the mining computers. When miners solve the hash, a new block is added to the blockchain. And a new unit of digital currency or bitcoin is given to the successful miner as a reward. Overall, hash rate is a measure of how many miners are involved in operating the network.
BTC’s hash rate fell significantly by 50% in June, after a peak in May 2021. Experts co-related the fall to China’s crackdown on bitcoin mining. It can be said that China had a large contribution to the popular cryptocurrency’s hash rate.