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The Consequences of Slowing Bitcoin Hash Rate Growth


Colin Wu, being a blockchain correspondent, noticed a certain pattern in the field of the cryptosystem and published the findings on his Twitter page. He analyzed the hash rate of the Bitcoin blockchain from the first to the fourth month of 2022 and noticed that it had risen by 10%. For comparison, I took the results of the corresponding period for the previous year. The indicator exceeded 30%. Colin Wu concluded that with a 1.2% slowdown in hashrate, there was a drop in mining difficulty.

Hashrate functions:

    shows the resources that are involved in mining;
    makes an assessment of the level of reliability and security of system blockchains.

Its computing power, as well as resistance to external attacks and other illegal actions, is based on the number of devices connected to the network (the more there are, the higher the indicators). With the advent of new miners, the hashrate is growing.

The slowdown and fall indicates that the number of miners has been reduced, their capacities have gone to other platforms. This happens in places where the requirements for activities related to cryptocurrency are tightened at the legislative level. The cost of a bingcoin is interconnected with the hashrate, so its slowdown may affect the price policy of the coin.

The analytical structure Fidelity notified that the Bitcoin cryptocurrency is decentralized and belongs to the most stable financial system in relation to other digital coins. Bitcoin is being worked on to improve it as a money commodity. This is fraught with the loss of properties that give it advantages as a virtual currency. Any branch will lead to a fall, since it makes no sense for miners to change a large financial network for a smaller, similar one.