Bitcoin network computing power hits a new high of 140EH

Glassnode data shows that the total computing power of the Bitcoin network has just reached an all-time high of 140EH.

The total network computing power is an important indicator to measure the computing power of the Bitcoin blockchain. In order to ensure the integrity of the distributed system, complex mathematical calculations must be performed. When Bitcoin is mined, blocks with verified transactions will receive new hashes and be added to the blockchain.

The current total network computing power (hash rate) has reached 140 (EH/S), an increase of 8% from 129 (EH/S) last month.

What does this mean for the price of Bitcoin?

When the Bitcoin hash rate increases, people always discuss whether a price increase will follow. This is because the funds invested by miners represent new funds flowing into Bitcoin in the market. This may exert momentum on Bitcoin, leading to an increase in the price of the cryptocurrency.

However, the correlation is not always clear. This chart from BitInfoCharts shows that the price of Bitcoin can still rise and fall while the hash rate remains constant. Ingo Fiedler, co-founder of Blockchain Research Labs, told the media that other aspects such as lending services for miners, market sentiment and miner competition can all have an impact on Bitcoin's hash rate.

“A mature lending market has enabled miners to borrow more capital at lower rates for their mining operating costs and hardware expenditures. This is due to the rise in Bitcoin prices over the past month and a generally more optimistic market sentiment.”

“This additional lending capacity gives miners more wiggle room in the mining race, allowing them to gain market share, ” he added.

This growth is good news for blockchain security. The higher the Bitcoin hash rate, the more secure the blockchain becomes. If someone were to try to disrupt or attack the blockchain, they would need to control at least 51% of the global hash rate, which becomes increasingly unlikely as the hash rate rises.

2020 has been a positive year for Bitcoin’s total network hash rate, which has been climbing steadily since starting at 105 EH/s in the first week of January 2020. However, the total network hash rate also dropped to 91 EH/s during the price crash on March 16, 2020.