What is a Bitcoin Hashrate?

Proshare

Wednesday, October 06, 2021/05:00PM / Sponsored Post by Julian Carter / Header Image Credit: Medium

 

As noted by the Bitcoin experts at SoFi Invest, this a Bitcoin Hashrate is, "the amount of computing and process power being contributed to the network through mining."

 

So, what does this mean? To understand the answer to this question, you have to understand how Bitcoin mining works. A massive computer network keeps the Bitcoin mining process maintained and continues to create - or "mine" - new Bitcoin. This computing processing power is largely responsible for the speed at which Bitcoin trades occur and for the continued creation of new coins. This network is constantly growing and expanding to create more coins.

 

The hash rate is the rate that this expansion occurs and is calculated on a per-second basis. Given the size of the Bitcoin network, it is probably no surprise to learn that these numbers can be expressed in quintillions per second.

 

How Does this Rate Change?

As anyone who is involved with Bitcoin mining knows, major fluctuations in this rate occur on a regular basis, and no one should expect the rate to be constant. Indeed, swings are both common, predictable, and understandable, and may occur for a variety of reasons, including new computers coming online or major trades occurring that temporarily block power.

 

Like many things related to Bitcoin, the rate will change on a constant basis. Anyone who is interested in getting more involved in cryptocurrency and Bitcoin must grow comfortable with this fluctuation.

 

How Does the Rate Affect me?

A higher rate is generally associated with increased stability and accessibility of the Bitcoin network. However, remember, it doesn't necessarily mean more money and profit. New coins are created based on their rate, but they are released to the network at predetermined times. As such, a rate may simply be an indicator of a network's overall speed and reliability.

 

Furthermore, different traders have different goals, and the rate may impact these goals. Users who are interested in a more stable or newer network may look for coins that have a rate that fluctuates less, while traders who are more interested in trading on volatility may be interested in finding a coin that has lower levels of stability.

 

At the end of the day, different traders will have different interests, and there is not necessarily a "good or bad" rate. Instead, it's more important that you fully understand what this rate means and how it can potentially impact your trading strategy.


 Proshare Nigeria Pvt. Ltd.


Related News

1.      China's Central Bank Declares all Cryptocurrency Transactions 'Illegal'

2.     CBN e-Naira Series 2: Can the e-Naira Deepen Financial Inclusion?

3.     CBN e-Naira Series 1: Examining the Positives

4.     How To Pick the Perfect Exchange Platform to Buy DOGE?

5.     eNaira - Yay or Nay?

6.     Crypto vs Forex Trading: Everything You Should Know Before Your First Trade

7.     CBN Selects Technical Partner for Digital Currency Project

8.     6 Drawbacks of Cryptocurrency and How You Can Work Around It

9.     Top High Pay Crypto Jobs in Nigeria - Alternative Ways to Earn with Crypto in the Bear Market

10.  Lagos Blockchain and Crypto-Arts Conference 2021

11.   Digital Wallet Opportunities in Middle East and Africa: A Whitepaper by Omdia, in Partnership

12.  Monetary Authority of Singapore and Banque de France Report Success from CBDC Experimentation

13.  The Launch of the Digital Naira and its Likely Impact

14.  The Changing Face of Finance, A New System Beckons

READ MORE:
Related News
SCROLL TO TOP