By Bitcoin’s hash rate has hit a new record high of 126 exahashes per second, according to blockchain.com.
The computing power needed to solve puzzles and mine blocks has more than doubled in the last 12 months.
Higher the hash rate, the difficult it is to launch a 51% attack. So, a rising hash rate is considered a good signal – more miners joining the blockchain, making the network more secure.
Prices follows hash rate?
Popular analyst and tweet poet, Max Keiser thinks there is a strong positive correlation between the price and the hash rate and the former follows the latter.
However, some analysts are of the opinion that the hash rate follows price, given, the latter has an impact on the mining profitability.
If prices drop sharply, mining profitability takes a hit, shaking out small and inefficient miners, leading to a drop in the hash rate.