Bitcoin Cash hash rate hits yearly peak as Phoenix dominates 90% of the network

Bitcoin Cash Hash Rate

The hash rate is a critical measure of a blockchain networks health. It measures the computational power used to mine and process transactions. A higher hash rate means a more secure network, requiring more computational power to alter the blockchain and making it more resistant to attacks.

Conversely, a lower hash rate indicates less computational power for mining and processing transactions, reducing the networks overall security.

So, while BCHs dramatic jump in hash rate excited the crypto community, it also sparked speculation about its causes and implications for the network.

The Bitcoin Cash Podcast attributed the surge to a new miner named “Phoenix, ” which captured most of the new BCH supplies. Data shows this miner produced about 90% of the blocks during those two days, though its dominance has fallen to 29% at press time.

Phoenix Bitcoin Cash Dominance

Parker Merritt, a researcher at CoinMetrics, supported this view. He suggested the miner was linked to the Phoenix Group, an Abu Dhabi-listed Bitcoin mining company that recently launched a mining pool service for BTC and BCH networks.

Further, Merritt noted that Phoenixs actions might be an attempt to highlight the “risks of mining centralization.”

Bitcoin Cash mining issues surfaced when the networks native BCH token plunged to a four-month low of $305.

Market observers attributed the decline to the broader market decline that saw major digital assets like Bitcoin fall by around 7% in the past day to under $55,000. At the same time, Ethereum also lost the $3,000 mark during the reporting period.