Crypto Buzzword: Bitcoin ‘Hash Rate’
By now, we assume you are aware of Bitcoin and crypto's primary value proposition. That of cutting off the middleman and being a self-auditing network that keeps crunching numbers ensuring everyone's on line, transparently, and in real-time.
You might also know that Bitcoin is described as ‘energy inefficient’ and using the same energy as the whole of Argentina.
In reality, what keeps Bitcoin going are mining gear, modified and overclocked chipsets designed to do one thing only: To calculate and solve problems presented by the ever-increasing Bitcoin's cryptographic hashes.
The ‘work’ done by these chipsets is because of Bitcoin's Proof-of-Work consensus algorithm that will only reward chipsets that do the most work.
Depending on the model and manufacturer--different mining gears will dispense different amounts of computing power, dubbed ‘hash.’
When channeled to the Bitcoin network, the cumulative amount of ‘hash’ is measured in ‘hash rate.’
It is this ‘hash rate’ or total computing power that's used to measure the activity of the Bitcoin network--or any other Proof-of-Work system.
With increasing adoption, Bitcoin's hash rate has been rising as more miners pour in to compete for the over $300k of BTC dispensed roughly every 10 minutes.