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Question #499

What impact do rising mining difficulty and hash rate trends have on Bitcoin network security and market outlook?

Category: General
They have no impact on market outlook since miners focus on costs, not network stability factors.
They boost Bitcoin price by creating artificial scarcity as miners struggle to solve increasingly complex blocks.
Higher difficulty and hash rate strengthen network security and signal miner confidence despite potential selling pressure.
They reduce network security by centralizing mining power in large pools, making 51% attacks more likely.

Why is this the correct answer?

This is correct because when mining difficulty and hash rate rise, it becomes harder for attackers to compromise the network, improving security. Additionally, sustained miner activity suggests confidence in future rewards, which can positively influence market sentiment even if selling pressure increases.

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