Topic: What does it mean when a hash rate is down? (Read 303 times)

hash rate is a general proportion of the handling intensity of the Bitcoin organize.
A high hash rate, when contrasted with a lower one, is ideal as it successfully implies the system is progressively secure from 51-percent attacks.
Accordingly, the invert of high hash rate is the low hash rate

that is pure nonsense for either bitcoin traders or altcoin traders.
for bitcoin hashrate and its fluctuations has no effects on the price. and for altcoins nobody gives a crap about hashrate. for example you can see there are shitcoins that have not even generated a single block for weeks and are still being pumped and dumped or for example there are shitcoins that have such a low hashrate and get 51% attacked every now and then and people still pump and dump them. as an altcoin trader you need to learn pump and dumps!

China has the highest hashing power.

They do not support mining, they are leading with it. Also, its been years since China started leading the mining of cryptocurrencies, if its not just banned, they would continue but now it is now again legal. That might be the reason why price of Bitcoin is increasing, don't you think?

Even if the hashrate increases it will not affect the Bitcoin value in any way because we have this feature called halving which "Satoshi Nakomoto" the founder of cryptocurrency added that automatically adjust the difficulty of mining so even a lot of miners joined the crypto mining industry it will not inflate the Bitcoin price.

Hashrate and difficulty, these markers actually indicate, how secure the chain is. When more miners start mining any specific coins, difficulty is adjusted with it to prevent 51% attack.  Good stable coin usually have large number of persistent miners and it indicates good health of the network. If hash rate goes down, it indicates something.

1. May be the mining of the coin is  not profitable anymore.
2. Sometimes big miners stop mining to adjust the difficulty
3. May be the coin is dying
4.May be the coin has lost popularity
5. May be miners shift from one coin to more profitable coin

Hash rate goes down means, the chain is less secure, vulnerable to 51% attack. Reduced hash rate also lowers the price of the coin

The hash rate itself is not a measure of the security of the system. The correct measure is the cost of the hash rate.

With the increasing hash rate means increasing security and potential to attract more investors, it doesn't mean that if there is a strong hash rate, then becoming a millionaire will be difficult. Think about the fact that the way how people achieve success depends on their way of execution of their decision and hash rate is too far to decide the faith of an investor to correlate the instance of becoming a millionaire when the hash rate is low. In the first place we should understand that having a huge hash rate implies positive effects to the network and its features.

It is very frustrating that an investor will be liable for any loss when it comes to the company or the owner. So before taking any action on a matter, we have to raise our foot in the well. And the currency system is a system where less time is needed to be a single currency. It doesn't take much time to make a millionaire exactly like that because bitcoin has a storng hash rate now.

There's a ton of room for variance when it comes to hashrate and price. The price can be stable and the hashrate can keep growing or falling without affecting the price. Or you can have the price change without hashrate being strongly affected or even moving in the opposite direction from what you'd expect. The theory tells us that hashrate and price are linked, but there's no mathematical formula that would calculate expected value of one based on another. I personally don't worry much about Bitcoin's hashrate and would never base any trades around it.

The hash rate has risen sharply lately, which could be due to the new efficient miners in the large mining pools.
Another reason is China's support for mining.

no it does not.
there is a lot of misleading information about hashrate and price and since some people are too lazy to do a little bit of research they prefer accepting it as truth.
the fact is price affects hashrate not the other way around. what happens is that for example price goes up then hashrate follows but lazy people see the hashrate rise and think price has gone up after it. but if they bother checking the charts they can see that it was not the case.

hashrate's importance is only for security of the network.

Its a matter of cost. It isn't cost effective to pull a 51% attack. Hashrate alone isn't enough, difficulty also matters. Since this also adjusts itself depending on network conditions, you can safely assume the network will be safe at all times.

Of course if you compare Bitcoin with the altcoins, there is little to doubt. The altcoins are "cheaper" to manipulate/attack. But even there, such attacks have been very rare. Take a look at Dogecoin, who is even mining that? Has it been attacked? Dogecoin is a Litecoin clone, so its very close to Bitcoin (closer than most altcoins anyway) except they made it infinite in supply. Years ago it exhausted its halvings, and even with strong scrypt asic miners, people don't bother. I think its mostly merge mined at best.

Its proof of the market self balancing. If its valuable, more will mine it, which makes it more difficult to attack and more secure. But when the benefit of mining lowers, so does the incentive to attack it. You would probably spend more attacking it than whatever you expected to obtain in the first place, in both scenarios: High hashrate high price, low hashrate low price.

The hash rate depends on how much and what is the total number of miners, Bitcoin is mined, mined. Maybe the hash rate depends on it. There are ASIC devices that support the hash rate of the Bitcoin network. For example, when a mining farm from Asiks burned down in the Chinese province, the bitcoin hash rate decreased due to a reduction in the hash rate.

A hash rate in the blockchain and cryptocurrency world is the number of hash operations that are done in any given amount of time, or the speed of the miner’s performance. Maybe you think that you don’t really need to understand what a hash rate is in order to be a successful cryptocurrency trader - but hash rates actually have a massive impact on the performance of a cryptocurrency, both in terms of market value and the performance of the blockchain. So, what does it mean when a hashrate is down? Let’s take a look.

https://www.youtube.com/watch?v=fnci-U-ZP2U

What is a hash rate?
Simply put, a hash rate is a way of measuring the processing power of a particular network. For the purpose of this article let’s look at Bitcoin. As Bitcoins are mined, blocks of verified transactions are “hashed” before they’re added to the blockchain. Each hash is created when a miner successfully completes a complex mathematical puzzle.

The hash rate measures how many times the miners can attempt to complete the puzzle in a second, and how difficult it is to complete the puzzle. The hash rate is a pretty good indicator of the health of a network. The higher the hash rate the more secure the blockchain is against 51% attacks.

https://twitter.com/KomodoGermany/status/1201567499667554309

Why do I need to know about hash rates?
In order to be a successful cryptocurrency trader, you should know as much about the operations of a blockchain as possible. With that being said, hash rates can have a massive impact on the performance of a coin. For example, eToro reports that Litecoin’s hash rate has been down by 60% due to its latest halving and that has caused mining profitability to plummet. According to eToro, poor mining profitability “has caused many miners to switch off their mining equipment or move to other networks.” This is contributing to the low hash rate.

A lower hash rate leads to less security on the network. The less secure the network is, the more susceptible it is to 51% attacks. Naturally you want to invest in a secure blockchain, and if your coin of choice is going to be less secure because of a low hash rate you might need to make some decisions. With that being said, hash rates do rise and fall with about as much volatility as the crypto markets, so don’t be too nervous if your coin’s hash rate plummets for a short while.

So, what does it mean when a hash rate is down? Quite a lot! The coin’s price can dip, the network is less secure and more susceptible to 51% attacks, and miners leave to move to other more profitable networks.

Want to learn more about how hash rates can impact a coin? Read here. If you’re looking to trade, looking at the hash rate is always a good metric to look at. If you’re looking to learn to trade, platforms like eToro should be your first port of call.

https://www.youtube.com/watch?v=kZXXDp0_R-w&t=207s

Hash rates are important - there’s no way around it
Hash rates are important when we’re trying to understand the performance of a network. They impact the security and viability of a blockchain, and you should definitely keep an eye on them if you’re into trading cryptocurrencies. So, what does it mean when a hash rate is down? More than you’d think.

https://coins.newbium.com/post/29480-what-does-it-mean-when-a-hash-rate-is-down