Within 24 hours, the Bitcoin network hash rate increased by 31.69% to reach a new record of 248.11 PE/s. This confirms, once again, the resilience of the network against a possible attack during the process of mining.
Hash rate represents the number of nodes on a network. Higher hash rates mean more decentralization and more computing power available on the network. The more decentralized a network is, the less vulnerable it is to cyberattacks.
Before this last jump, the hash rate was around 188.40%. However, with this impressive surge, the Bitcoin network is once again demonstrating its resilience. Indeed, when China banned cryptocurrencies and crypto mining in June 2021, many feared that the security of the Bitcoin network would be impacted, as at the time China-based miners provided 34.2% of the rate. total hash on the network.
However, the network quickly recovered as miners moved to other countries. Last year, the hash rate increased by 54.33%. Today, 35.4% of hashrate comes from US-based miners, making the country the king of Bitcoin mining. Also, the state of Georgia has become a global hub for crypto mining.
The hash rate already hit an all-time high in January
That said, this isn’t the first time Bitcoin’s hash rate has hit an all-time high this year. In January, the network had an average speed of 190.71 PE/s, despite the suspension of the Internet in Kazakhstan.
In January, the network had an average hash rate of 190.71 EH/s despite the problems faced by miners in Kazakhstan. Due to some socio-political unrest, the Kazakh government had decided to shut down the internet, which caused Bitcoin’s hash rate to drop by around 13%. Given that the country is the second largest crypto mining hub in the world, this situation has been a major concern for some miners, even started to explore the possibility of migrating to other countries in order to continue their activities.
However, this rise in hash rate shows that despite the drop in Bitcoin’s price, its community continues to support it.
Bitcoin mining sparks mixed reactions
Bitcoin mining has come under a lot of criticism due to its high energy consumption which many believe harms the environment.
In Europe, the Governor of the Central Bank of Hungary, György Matolcsy, recently called on the EU to ban crypto mining. This proposal came only a few weeks after Swedish authorities banned proof-of-work crypto mining.
The global energy shortage on the one hand, and the effects of climate change on the other, have put crypto mining under the radar again. However, not everyone supports banning cryptocurrency mining.
Indeed, while most industry players understand the need for regulation, some stakeholders do not agree with banning crypto mining.
European Union (EU) Member of Parliament Stefan Berger recently claimed that a ban on crypto mining would be a death sentence for Bitcoin within the EU.
Greener energy sources
Kryptovault, Norway’s largest Bitcoin mining company, also wants to change conventional wisdom about crypto mining’s energy consumption and contribution to pollution. Currently, the country uses 100% clean energy, with 95% hydroelectricity and 5% wind power. Kjetil Hove Pettersen, CEO of the company, says there are other ways to mine than coal.
“If you’re using coal for crypto mining, that’s a different story; that’s what you don’t want. Mining can be done in other places like Norway – and it can be a way to save unused energy,” he explained.
Additionally, several members of the crypto community are emphasizing the role that crypto mining could play in encouraging the use of renewable energy.
In the United States, renewable energy has already been proposed in Congress, when Texas Senator Ted Cruz (R-TX) spoke about the abundance of natural gas. According to him, if this gas is burned on site, its energy could be used in generators to mine Bitcoin. The problem with this proposal by Senator Cruz, however, is that this process still releases other products into the air.
Disclaimer
All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on information found on our website is entirely at their own risk.