Bitcoin hashrate growth slowdown: risks and consequences

Colin Wu, being a blockchain correspondent, noticed a certain pattern in the field of cryptosystems and published his findings on his Twitter page. He analyzed the hashrate of the Bitcoin blockchain from the first to the fourth month of 2022 and noticed that it had risen by 10%. For comparison, he took the results of the corresponding period for the previous year. The indicator exceeded 30%. Colin Wu concluded that with a slowdown in the hashrate by 1.2%, there was a drop in mining difficulty.

Hashrate functions:

• shows the resources involved in mining;
• assesses the level of reliability and security of system blockchains.

Its computational ability, as well as resistance to external attacks and other illegal actions, is based on the number of devices connected to the network (the more there are, the higher the indicators). With the arrival of new miners, the hashrate increases.

The slowdown and drop indicate that the number of miners has decreased, their power has gone to other platforms. This happens in places where legislative requirements for activities related to cryptocurrency are tightened. The cost of Bitcoin is interconnected with the hashrate, so its slowdown may affect the pricing policy of the coin.

The analytical structure of Fidelity notified that the cryptocurrency Bitcoin is decentralized and is the most stable financial system compared to other digital coins. Work is being done on Bitcoin to improve it as a means of monetary goods. This is fraught with the loss of properties that give it advantages as a virtual currency. Any fork will lead to a fall, as there is no sense for miners to change a large financial network for a smaller, similar one.