This text was initially revealed by 8btc and written by Vincent He.
Computing energy doesn’t decide the value of cryptocurrency — quite the opposite, the value of cryptocurrency impacts computing energy. Not too long ago, there was a heated dialogue about Bitcoin’s hash price with many individuals wanting ahead to seeing it break 100 exahashes per second (EH/s).
So it’s vital to take a look at the connection between Bitcoin’s hash price, value, halving and safety.
The essence of cryptocurrency mining is to conduct hash price operations, so computing energy may be measured within the variety of hashing operations per second. For instance, Bitcoin’s hash price is about to break 100 EH/s, that means that 100 exahash operations may be accomplished in a single second.
Above is the road break chart of Bitcoin’s common each day computing energy. You will see that the fluctuation of Bitcoin’s each day computing energy shouldn’t be small. For instance, the hash price 101.23 EH/s on September 16, 2019, dropped to 88.96 EH/s on September 17, 2019 — a decline of 12 %. Will increase or decreases of about 10 % are quite common. Why is that? As we talked about above, the hash price is the sum of all computing energy. Does it imply that 1000’s of mining machines are switching on and off day by day?
In actual fact, the hash price can’t really be counted. What we see within the chart above shouldn’t be the precise computing energy, however an estimate based mostly on the problem and the time of block affirmation. Mining problem and computing energy, along with luck, will have an effect on this time.
The luck of the entire community fluctuates enormously on a 24-hour scale, so the common each day computing energy on a single day doesn’t have a lot reference worth. We should take a dimensional view of the computing energy to scale back the deviation introduced on by this luck. That’s to say, the common seven-day computing energy could have exceeded 100 EH/s, however the common each day computing energy has not but damaged it.
For bitcoin, or all proof-of-work-based cryptocurrencies, safety doesn’t depend upon the hash price however on the price of 51 % assaults. The upper the assault price, the safer the community will probably be. The present enhance in Bitcoin’s hash price signifies that the necessities for 51 % assaults on the community are correspondingly elevated, however this doesn’t imply that the price of 51 % assaults has elevated, as a result of the unit price of computing energy needs to be considered.
There isn’t a direct relation between the Bitcoin hash price and bitcoin’s value. Hash price doesn’t decide value. Quite the opposite, value will have an effect on hash price. When the value rises, the miners’ earnings are enlarged, which is able to appeal to extra miners to be part of the community, thus rising the hash price of Bitcoin. The price is set by the value of bitcoin and the value underpinned by the price.
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