Better

Bitcoin

Phantom

<p>The Bitcoin network’s hash rate has just reached a new all-time high, surpassing for the first time the symbolic threshold of 500 million terahashes per second. However, some experts warn of a sharp reversal risk. A sudden drop in hash rate would weaken the network’s security and cause the price of Bitcoin to plummet.</p> 
<h2 id="h-stratospheric-hashrate-a-cause-for-concern">Stratospheric Hashrate: A Cause for Concern?</h2> 
<p>This new record is a testament to the increasing power allocated to the <a href="https://www.cointribune.com/en/crypto-guides/ultimate-guide-to-mining/" target="_blank" rel="noreferrer noopener">mining</a> of Bitcoin. However, it hides a flaw: the hash rate is still too concentrated in the hands of a few players and its dependence on seasonal energy sources like hydroelectricity.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1"> 
 </div> 
</div> 
<p>In fact, a significant portion of mines around the world depend on temporary energy surpluses. Yet, this cheap electricity has its limits. Its production could fall during periods of drought, causing many mining operations to shut down.</p> 
<h2 id="a-real-threat-to-bitcoin-even-with-tailwinds">A Real Threat to Bitcoin Even with Tailwinds</h2> 
<p>If the hash rate were to fall significantly, it would be problematic. With the difficulty maintained at <a href="https://www.coinwarz.com/mining/bitcoin/hashrate-chart" target="_blank" rel="noreferrer noopener">record levels</a>, securing transactions would suddenly require much less computational power.</p> 
<p>This would increase the risks of an attempted takeover by a malicious actor. Confidence in Bitcoin could then erode, potentially affecting its value.</p> 
<p>Yet, the king of cryptos seems to have the wind in its sails. Its market capitalization has jumped several times in recent months, in a context favorable to Bitcoin ETFs. On December 3, it broke through the $40,000 barrier, the highest in 19 months. </p> 
<h2 id="towards-a-downward-event">Towards a Downward Event?</h2> 
<p>Some experts believe that the much-anticipated approval of a spot ETF could even trigger a correction. “Buy the rumor, sell the news”: the classic scenario suggests that the price will fall after the realization of positive outlooks.</p> 
<p>Analysts are divided, however. While fluctuations are possible in the short term, many also bet on the structural bullish potential of Bitcoin due to <strong>this institutional adoption.</strong></p> 
<p>Regardless, the network must continue to improve its architecture to solidify this growing success. Better geographical and energetic distribution of mines would strengthen its robustness in the long term. Moreover, Qatar could <a href="https://www.cointribune.com/en/?p=653289" target="_blank" rel="noreferrer noopener">invest 500 billion dollars in bitcoin.</a></p>

Bitcoin: Drop in Hash Rate, The Phantom Threat Weighing on Its Price

Table of Contents

Cointribune EN

Other articles published on Dec 6, 2023

Baldur’s Gate 3: A Statistical Insight into Player Choices and Gameplay Trends

ETHEREUM Ignites: Is the Price Ready to Embark on a Bullish Run

BONK Coin Soars Replicating DOGE and SHIB’s Early Rallies

CoinMarketCap: BitTorrent top performer with 104% price gain

Stepmint: Move to earn your way through health and crypto rewards

Solana's Saga— A Digital Coin with a Real World Twist

Join our free newsletter for daily crypto updates!