Hello,
I'm wondering , Why does it matter that there will be more hash power?
Hash power fell drastically while BCH was on the rise. But I never understood why does it matter that there will be more hash power than there already is.
In a broad sense, it doesn't matter. Rising hash power is just indicative of mining investment. It means that miners are increasingly investing into hardware and bringing that hardware online.
If the bitcoin network adjust its difficulty so there will be a block every 10 mins and more hash power doesn't mean a pool will be able to just fill in more transactions to the same block since it's limited to 1MB.
Someone will have to solve the block so why does it matter if more or less miners are mining?
Is it just because the more there's competition over finiding a block and that means the value may rise since there's more demand?
Like it isn't about benefiting the technical side of the bitcoin network?
Thanks.
There are security implications, but at these hash rate levels, a difference of 1 PH/s or 3 PH/s in the overall hash rate will be negligible. In both cases, the likelihood of successful, enduring 51% attacks is remote.
If there is an extreme drop in the hash rate, e.g. if 99% of the hash rate leaves the network, then we may have a problem. It's possible that a block might never be mined again under these conditions. In that case, a hard fork might be necessary to address the difficulty algorithm.