Bitcoin Cash Hash Rate 2Xs Overnight as ‘Phoenix’ Launches

Bitcoin Cash hash rate leaps overnight as the mysterious ‘Phoenix’ miner emerges, stirring debate over their intentions.

Happy woman sitting on an upwards going chart in space.
Created by Gabor Kovacs from DailyCoin
  • Bitcoin Cash’s hash rate surged overnight.
  • The surging BCH hash rate is raising questions about the sudden change.
  • Roger Ver was released from jail, but his troubles are far from over.

The hash rate measures the health and security of a blockchain network. It represents the computational power dedicated to mining, with higher rates signifying increased network strength and attack resistance. For Proof of Work blockchains like Bitcoin Cash (BCH), the hash rate refers to the number of guesses per second needed to match the target hash and earn mining rewards.

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On Tuesday evening GMT, Bitcoin Cash experienced a significant event as its hash rate surged dramatically to a 17-week high, sparking questions about the cause.

What Is Happening with Bitcoin Cash? 

The Bitcoin Cash network experienced an unprecedented surge in hash rate overnight, skyrocketing 156% from 3.6 EH/s to 9.4 EH/s. This dramatic jump, reaching a 17-week high, sent ripples through the cryptocurrency community, prompting widespread speculation on the underlying causes and potential implications for BCH.

Bitcoin Cash hash rate spiking higher per CoinWarz.
Bitcoin Cash hash rate per CoinWarz

Su Zhu, co-founder of the now-defunct Three Arrows Capital hedge fund, took to social media to seek answers from the crypto community regarding this dramatic spike in hash rate.

The Bitcoin Cash Podcast reported that the explosion in hash rate coincided with the emergence of a new, unknown miner called ‘Phoenix.’ According to their observations, this mysterious entity has been ’capturing all fresh BCH supply.’

Speculation about the motives behind Phoenix’s sudden appearance runs rife. The Bitcoin Cash Podcast posited that the miner is either front-running an anticipated increase in the BCH price or preparing for a network attack.

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However, the Bitcoin Cash Podcast emphasized that the latter scenario seems unlikely, adhering to the principle that miners should be given the benefit of the doubt until proven otherwise.

The surge in BCH’s hash rate comes as a welcome boost following a period of uncertainty caused by the high-profile arrest of BCH advocate Roger Ver on tax evasion charges in April.

Roger Ver Bailed

The Bitcoin Cash community was shaken by the news of Roger Ver’s arrest in Spain in late April. Ver, a prominent BCH advocate, faced allegations of failing to pay $48 million in taxes after renouncing his U.S. citizenship in 2014.

The timing of Ver’s arrest, coinciding with the detention of the Samouri wallet devs on charges related to unlicensed money transmission and money laundering, fueling speculation about a broader crackdown on the crypto community.

Ver was released from prison on May 17 after posting €150,000 ($163,000) bail. However, his passport was confiscated, and he was required to report to the court every two days, confining him to Spain. Meanwhile, the U.S. government is actively pursuing his extradition to face charges related to the alleged tax evasion.

On the Flipside

  • Bitcoin’s hash rate has been trending lower since the halving, suggesting that BTC miners may be switching to BCH mining.
  • While an increased hash rate can improve security, it doesn’t necessarily correlate with price increases.

Why This Matters

This dramatic surge in Bitcoin Cash’s hash rate signals a potential shift in the network’s landscape, potentially signaling growing confidence in the BCH network.

The Bitcoin Cash halving in April saw a collapse in the hash rate:
Bitcoin Cash Hash Rate Tanks Post Halving, But Price Soars

Market response to Solana ETF filing proves unsustainable:
Solana ETF Filing Fails to Incite SOL Past Initial Excitement

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Samuel Wan

Samuel Wan is a finance professional turned crypto journalist, known for his insightful reporting on market trends, regulatory changes, and technological developments within the digital asset industry. His ability to simplify complex concepts and report the facts has made him a trusted source in the crypto community. Beyond his writing, Samuel is an active mountain biker and gamer.