Bitcoin network hash rate, 1-year chart. Source: blockchain.com
The hash rate of a cryptocurrency — sometimes referred to as hashing or computing power — is a parameter that gives the measure of the number of calculations that a given network can perform each second. A higher hash rates increase the competition among miners to validate new blocks; it also increases the amount of resources needed for performing a 51% attack, making the network more secure.
The string of new records posted throughout summer is a bullish sign, with analysts and traders alike buoyed by signs of the strength and robustness of the network.
While the event can have bullish implications for a coin’s price (by increasing scarcity), its impact on miners is keenly watched, with some concerned that lower block rewards will deter network participants and adversely impact the network’s hashing power.
This summer, Litecoin (LTC) creator Charlie Lee — who had forecast a post-halving shock to the coin’s mining ecosystem — had his expectations overturned when the network’s post-event hash rate was revealed to be just as robust as ever.
In a tweet posted earlier this month, Bitcoin investor Max Keiser argued that:
“Price follows hashrate and hashrate chart continues its 9 yr bull market.”