Bitcoin hashrate reaches new all-time high

Bitcoin’s hashrate reached an all-time high over the weekend

Bitcoin’s hashrate reached an all-time high over the weekend. The hashrate refers to the total computational power that is allocated by miners to process transactions and add blocks onto a blockchain using a proof-of-work consensus algorithm. 

The higher the hashrate, the more costly and difficult it is for someone to attack the network, thus making it more secure. 

Although high hashrates increase mining difficulty and could potentially discourage some miners, they also demonstrate a rising level of interest and competition in the sector. 

China crackdown

In the wake of the Chinese government’s crackdown on cryptocurrency transactions and mining last year, bitcoin’s hashrate fell from 151 million exahashes per second (EH/s) to a low of 58.4 million EH/s.

The hashrate soon recovered, however, and broke record highs as miners relocated from China to Kazakhstan, the United States and Russia.

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Weekend surge

This metric jumped from around 188.4 million EH/s last Friday to an all-time high of 248.11 million EH/s on Saturday, according to data from Blockchain.com

Although the bitcoin network itself may be secure, the latest record high comes at a time of increasingly bearish sentiment in the cryptocurrency markets. 

The prospect of central banks undertaking several interest rate hikes to combat runaway inflation in 2022 has made investors more risk-averse, prompting a cycle out of high-growth technology stocks and cryptocurrency speculation. 

By 13:20 GMT (UT) today, bitcoin was trading flat at $42,568, down 7% in the past five days.

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