As Bitcoin’s valuation retreated, the king coin’s other network metrics have also made a significant rise. BTC’s mining difficulty hit an all-time high after surging by 11.26% to 7.46T. The cryptocurrency’s hash rate also continued to maintain an upward trend. At press time, BTC’s stood at a hash rate of 43,386 TH/s.
Amidst reports of Bitcoin’s Hash Power growing at a steady pace, Alex Petrov, the Chief Information Officer of Bitfury, in a panel at Magical Crypto Conference earlier this May, said that Bitcoin hash rate was growing because it was a “natural protection barrier” to shield the market cap cost of the Bitcoin blockchain. He explained,
“For example have a coin and there is $10,000 in the market cap, so the cost of an attack should be an out high to protect the 10,000 market cap of the coin from the external attacks”
The CIO of the leading blockchain company further said that this was usually so in the case of Proof-of -Work-based digital coins. According to Petrov, PoW should be proportional to the market cap of the coin, ie, PoW should “grow” with the increasing market cap.
Petrov also said that Bitcoin mining using CPUs was highly susceptible to a network attack, hence, the hash rate “should keep the barrier” high enough to “disallow any attack attempt” on the network.
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