Analysis of the Recent Rise in Bitcoin Hashrate

The process of Bitcoin mining comprises of adding new transactions to the Bitcoin blockchain while adhering to Bitcoin’s consensus rules, securing the blockchain network by solving mathematical puzzles, and incentivizing miners with bitcoin to secure the network. Essentially, it decentralizes the processes of token issuance and trade settlement, and clearing.

The strength of the Bitcoin network is usually measured in hashrate, i.e., hashes per second. Bitcoin hashrate refers to the combined computational power used to mine bitcoin and process transactions on the Proof-of-Work blockchain. This happens via a huge global network of mining machines built specifically for this task, called Application Specific Integrated Circuits (ASICs).