Mysterious Crash Arises on the Bitcoin Network as the Hash Rate Drops Down 40%

The Bitcoin network hash rate, which was reaching all-time highs a few weeks ago, has recently dropped around 40% yesterday. The news comes as a shock for the network as the numbers were pretty good so far. According to information from Coin.dance, the hash rate plummeted from 98 million to 57,7 million TH/s.

Just five days ago, Bitcoin reached an all-time high speed, so it was considered very weird that such a low hash rate was discovered yesterday. Several traders and analysts are still trying to understand the flash crash.

A hash rate, in case you have been wondering, is the rate that shows how much power the network is using to mine tokens. The more miners there are out there, the higher the hash rate will tend to be. Such large drops can mean several different issues, so it is hard to explain why this happened.

Many mining rigs could have been shut down for some reason or maybe another smaller event made the network to be considerably slower than it normally is. In any case, a high hash rate is important because it means that there is more protection against 51% attacks that could disrupt the network.

A high hash rate also means that the prices of Bitcoin will tend to go up. The Bitcoin maximalist Max Keiser has recently affirmed that price always follows the hash rate so if the hash rate continues to go down, this could mean that prices would be affected in a negative way.

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Hank Klinger
Hank Klinger
Hank Klinger has been working online for seven years now. He has written for several national companies. Hank has been a part of our team for over three years, reviewing ICOs, new cryptocurrencies and helping us keep up to date with industry news. His primary knowledge is in marketing, sales, and advertising, and he uses that knowledge to research and pick out reliable sources of information to use as a basis for his writing.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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