Hash power on the Bitcoin network has been soaring since May of this year. In the last month alone, Bitcoin has gone from a hash rate of 63.79 million EH/s to 102.85 EH/s. This massive increase directly signals major interest in mining as the block reward halving approaches with less than a year to go, September 19, 2019.
Triple-Digit Hash Power
In a landmark day for Bitcoin, the hash rate can’t seem to stop going up. Bitcoin broke through the 100 EH/s mark and continues to grow with every hour.
Bitcoin’s hash rate has historically surged in the months after a halving event, but with more participants aware of how the economics works, it seems more miners are joining in before the block reward is cut.
With a block reward approaching, a surge in interest for mining, and regulators across the world acknowledging the value of Bitcoin, it seems like a perfect storm is brewing for the decentralized cryptocurrency. Ever since Libra was announced, it started to absorb the brunt of regulatory scrutiny and public criticism, deflecting it away from Bitcoin.
Boost to Network Security
Computational power on the network is one of the key measures of decentralization, as it shows that the network is becoming more secure as more resources go into the block production process. It also serves as evidence for growing positive sentiment around Bitcoin.
The more hash power a network has, the more difficult it is to launch a 51 percent attack on it. Currently, it costs about $177 billion to purchase enough computational resources to attack the Bitcoin network. This means no single individual is capable of doing this, but a company or government might be able to.
What’s important to take away from this is how the perception of Bitcoin has improved over the span of 10 months since Bitcoin bottomed in December 2018. The network is growing stronger and continues to dominate other coins in almost every on-chain metric.
The security model of Bitcoin is dependent on hash power, and as it becomes more profitable to mine bitcoin, we can expect to see huge amounts of power come onto the network. This will strengthen the core premise of the network by boosting security and making attacks less probable.