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Question #592

How does a decline in Bitcoin’s hashrate signal changes in miner activity and network resilience?

Category: General
A hashrate decline signals miner unexpected profitability improvements leading to increased network resilience
A hashrate decline shows miners adding equipment which boosts hashing power and network security
A hashrate decline directly correlates with Bitcoin price increases, reflecting bullish investor sentiment
A hashrate decline indicates miners reducing operations because profitability falls, weakening network security

Why is this the correct answer?

This is correct because hashrate measures the total computational power securing the Bitcoin network. When mining becomes less profitable, some miners shut off equipment, causing the hashrate to drop and lowering the cost and difficulty for potential attackers, which reduces overall network resilience.

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