Data monitoring firm Blockchain.com has come out with news that Bitcoin’s hash rate has peaked at a new high. This beats the previously held peak point reached in the month of June. The rate has progressively scaled up since then.
A currency’s hash rate represents the total volume of calculations that surge through its network in a given second. For crypto miners, this is a supremely vital factor to keep tabs with, given that stronger hash rates would mean higher potential for making rewards. A stronger number also spikes the total volume of energy and resources needed to carry the transaction across, thereby making the network more stable.
In the blockchain networks running digital currencies, the ‘hashing’ is required to seal any new emerging transaction, before also recording them and applying a time seal upon them. The process of hashing, all in all, is critical to the nature of the crypto network, and is one of the major factors preserving the blockchain system’s concrete nature.
Spikes in a digital currency’s hash rate therefore signify a higher energy consumption in the broader crypto network supporting the currency. An interesting fact surrounding all of this, is that crypto research corporation CoinShares had just recently projected that more than three-forth of energy powering crypto mining is renewable in nature.
Going by recent emerging reports, the market stretch spawning after summer of 2018, nicknamed the ‘crypto winter’ proved to be a negative fallback for the broader Bitcoin network. During that stretch of time, the currency’s hashrate saw a deterioration for the first recorded time in its history.