Network security is foundational to bitcoin’s existence and success. The fact that the price of bitcoin gets the lion’s share of attention is at least partly because bitcoin has proven so reliably secure at the protocol and network level for more than a decade. Securing personal cryptoasset holdings also receives more attention than network level security, and for good reason.
While it is true that bitcoin’s price and security are closely intertwined, the absence of reliable network security would undoubtedly negatively impact bitcoin’s price perhaps catastrophically. Robust network security is bitcoin’s most essential feature.
In 2011, Blockchain.com coined the term “hash rate” to define the amount of total computing power that is estimated to secure the bitcoin network.
Bitcoin network security has many different elements, but the hash rate level is one of the most important. In short, the more hash rate computing power Personal computer the greater the level of bitcoin network security and resilience against 51% attacks which is common among some altcoins.
Following a halving, if bitcoin’s price remains at roughly the same level as pre-halving, then a drop in hash rate is expected and the network becomes less secure.
This is because less efficient miners, now earning lower mining reward income, will be forced to shut down or point their computers to mine another cryptocurrency where they are still cost competitive.