In around two minutes you will know what is Hash Rate. You will get both professional definition and easy explanation. No intro, no outro, straight to the point.

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Hash Rate is the measurement of processing power of the Bitcoin network.

And if you are not sure what Bitcoin means, feel free to watch one of my previous videos.

The way Bitcoin’s network works is through complex mathematical calculations. Evey time someone uses Bitcoin to make a transaction, it is encrypted and recorded on the blockchain.

After that, miners have to decode the transaction in order to confirm it and make it legal. In very basic understanding, decoding means solving mathematical equations by computers. Which is known to general public as mining.

And hash rate is basically the representation of how many such calculations are performed every second.

Generally speaking, the higher the hash rate is, the better. Because it means that more people are using bitcoin network, more computers are involved in mining, and there are more calculations happening every second. Which in return increases the safety of the whole network.

Historically, an increase or a decrease in hash rate is related to an increase or a decrease respectively in bitcoin’s price. But crypto market is still relatively new and irrational. That is why such relation is not 100% confirmed.

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*None of this is meant to be construed as investment advice, it's for entertainment purposes only. Links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.

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