Bitcoin Hash Rate Unexpectedly Drops 40%
San Francisco — After soaring to new heights, the hash rate of the Bitcoin network dropped 40% overnight. As more computers worldwide compete to solve the mathematical formulas required to earn Bitcoin, the hash rate, or computing power, rises. A strong hash rate is indicative of a healthy market and shows competition between Bitcoin miners.
Several reasons for this sharp drop have been suggested, ranging from China ending subsidies for free hydro-electric power to a variance in block time rewards. At the time of writing, the hash rate had already began a recovery.