I've noticed the network hashrate has decreased, does that mean anything for overall monero future.
What happens if the network hashrate gets too low? What level is dangerously low?
Just wondering, I am a bit of a newb so just wondering. Thank you
2 Answers
Value of a coin and hash rate goes hand in hand. If value of coin decrease, then miners will have less reward for their mining and will rather go mine some other more profitable coin.
So if a coin is used only by 2 people and have low value. The hash rate needed to run network is tiny, but network is still secure.
Motive behind doing a 51% attack is economic and when value of coin decrease, there is less interest to do an 51% attack, since attacker would gain less. So when overall miners hash rate decrease and price of coin decrease, there is no higher danger for a 51% attack as before.
The network hash rate will vary over time. In general, the higher and more decentralized the hashrate, the more secure the network.
If the hashrate becomes too low, then Monero would become less expensive to 51% attack. There is no way to specifically quantify what "too low" is. Currently, Monero has the highest has rate of any coin based on CryptoNote and by a very large margin. Smart mining when released should help increase hashrate and mining decentralization further.
