If a Higher Hash Rate Means Higher Speed, Security & Value of a Network, Bitcoin Would Be Worth Way More Than Today
By definition, the hash rate is the speed at which a computer is completing an operation in the bitcoin code. Which means, the higher the hash rate, the more speed within the network.
When the hash rate of a network rises, the overall power, security and capability of that specific network go up.
If the hash rate is an indication of the computational power of the entire network, then the conclusion must be that:
hash rate = power of the network = value of the network
When taking that equation and applying it to the hash rate of bitcoin it becomes pretty obvious that prices do not reflect the growth of hashrate that has been taking place since 2013. In fact, the hash rate of the bitcoin network when it hit ATH in November 2013 was around 5.61P. Today the hash rate is at 2.87E. That's 2870 P, which means the hash rate has increased by a factor of 511. Which ultimatively means (when taking that equation above as valid), that the power of the bitcoin network has increased by 511x times since 2013, and is thus 511x more valuable than in 2013, when it peaked at $ 1,216.73 on Gox.
Lets put that in a calculator. 1,216.73 * 511 = $ 621,749 / BTC
That means, IF the equation hash rate = power of network = value of network really is true, it indicates that:
a) Bitcoin is severely undervalued
b) the chart of the hash rate growth could reflect the price growth we may witness in the future, after taking out ATH
c) that the world has not even remotely grasped HOW insanely precious BTC will be in the future.
d) that in terms of value, we would still be around here (around the level of ATH in 2013):
If the equation is true (and I encourage you to discuss), BTC might see a wild ride in years ahead after confirming the breakout over ATH in order to catch up with the rising hash rate. This is purely hypothetical. Please feel free to discuss. Might be the equation ain't right, in which case I would love to hear arguments.
Take Care Steemerz
Hash rate chart -> [http://data.bitcoinity.org/bitcoin/hashrate/all?c=m&g=15&r=week&t=a]
I personally think hybrid dpos type systems are the best out there at present that have actually been run and tested beyond "testnets".
If one looks at why dpos was created, it becomes painfully apparent why hashrate does not equal price of bitcoin. Bitcoin is wonderful, but needs to change or die imho...
Dont get me wrong, I love bitcoin but just because i love her doesnt mean she doesnt have to look at always pursuing self improvement. :P
For sure Bitcoin is in trouble and needs some fix. But thats also an opportunity for other cryptos to take over some of that market cap. I'm absolutely fine with the idea that BTC is the virtual Gold, purely storage of value, even when its slow, when nothing is done on the blocksize issue
True. And btc is in the awesome position to capitalize on the benefits of being able to watch those "alts" and take some of their ideas to improve.
Lets hope that happens. Lets also hope that the governance of bitcoin allows for the people to make actual decisions instead of having only one option--selling bitcoin.
I believe BTC won't change. It will be the Gold of Crypto, that means slow but stable. My guess is that LTC will get a share of BTC's market cap as they are implementing SegWit first, will give a tremendous advantage. See my other articles for further explanation and analysis
First mover advantage is powerful indeed. I suppose we shall see >.<