Bitcoin Hash Rate Heading to 100 EH/s: How Price, Halving and Security Are Involved

This article was originally published by 8btc and written by Vincent He.

Computing power does not determine the price of cryptocurrency — on the contrary, the price of cryptocurrency affects computing power. Recently, there has been a heated discussion about Bitcoin’s hash rate with many people looking forward to seeing it break 100 exahashes per second (EH/s).

So it’s important to look at the relationship between Bitcoin’s hash rate, price, halving and security.

The essence of cryptocurrency mining is to conduct hash rate operations, so computing power can be measured in the number of hashing operations per second. For example, Bitcoin’s hash rate is about to break 100 EH/s, meaning that 100 exahash operations can be completed in one second.

81
Source: QKL123.COM
81
Source: QKL123.COM

Above is the line break chart of Bitcoin’s average daily computing power. You will find that the fluctuation of Bitcoin’s daily computing power is not small. For example, the hash rate 101.23 EH/s on September 16, 2019, dropped to 88.96 EH/s on September 17, 2019 — a decline of 12 percent. Increases or decreases of about 10 percent are very common. Why is that? As we mentioned above, the hash rate is the sum of all computing power. Does it mean that thousands of mining machines are switching on and off every day?

In fact, the hash rate cannot actually be counted. What we see in the chart above is not the actual computing power, but an estimate based on the difficulty and the time of block confirmation. Mining difficulty and computing power, together with luck, will affect this time.

The luck of the whole network fluctuates greatly on a 24-hour scale, so the average daily computing power on a single day does not have much reference value. We must take a dimensional view of the computing power to reduce the deviation brought on by this luck. That is to say, the average seven-day computing power may have exceeded 100 EH/s, but the average daily computing power has not yet broken it.

For bitcoin, or all proof-of-work-based cryptocurrencies, security does not depend on the hash rate but on the cost of 51 percent attacks. The higher the attack cost, the safer the network will be. The current increase in Bitcoin’s hash rate means that the requirements for 51 percent attacks on the network are correspondingly increased, but this does not mean that the cost of 51 percent attacks has increased, because the unit cost of computing power should be taken into consideration.

There is no direct relation between the Bitcoin hash rate and bitcoin’s price. Hash rate does not determine price. On the contrary, price will affect hash rate. When the price rises, the miners’ profits are enlarged, which will attract more miners to join the network, thus increasing the hash rate of Bitcoin. The cost is determined by the price of bitcoin and the price underpinned by the cost.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Crypto Scams

Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
April 23, 2022
Prove
Joon Pak Head of Crypto at Prove talks to Us about Crypto Fraud And More
April 11, 2022
Mintable
Mintable CEO Zach Burks Talks to Us about the Opensea Stolen NFTs and Their Recovery
March 21, 2022
Crypto Crime
Crypto Crime Surges To Record Highs As Thieves Follow Market Buzz – Chainalysis 2022 Report
February 24, 2022
Bots Circumvent 2FA Login At Coinbase And Other Crypto Exchanges In 2022
Bots Have Circumvented 2FA Logins At Coinbase And Other Crypto Exchanges In 2022
February 17, 2022

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

Russia
Roundtable Interview-What is the Effect of The Russia-Ukraine War on Cryptocurrency Prices?
March 4, 2022
GamStop
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
Ethereum
The Unconventional Guide to Ethereum
October 28, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin29,301 0.26 % 3.92 % 2.08 %
Ethereum1,965.4 0.14 % 5.06 % 2.99 %
Tether1.002 0.05 % 0.06 % 0.02 %
BNB321.14 0.69 % 2.39 % 7.70 %
USD Coin0.9989 0.16 % 0.08 % 0.04 %
XRP0.4070 0.35 % 3.90 % 3.92 %
Binance USD1.002 0.32 % 0.06 % 0.02 %
Cardano0.9566 0.22 % 0.68 % 6.96 %
Solana49.11 0.13 % 8.53 % 8.47 %
Dogecoin0.08304 0.57 % 5.31 % 5.63 %

bitcoin
Bitcoin (BTC) $ 29,253.00
ethereum
Ethereum (ETH) $ 1,964.99
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 323.40
usd-coin
USD Coin (USDC) $ 1.00
xrp
XRP (XRP) $ 0.40686
binance-usd
Binance USD (BUSD) $ 1.00
cardano
Cardano (ADA) $ 0.513904
solana
Solana (SOL) $ 49.16
dogecoin
Dogecoin (DOGE) $ 0.083653