The hashrate is a measure of the computational power that a device or network provides during Bitcoin mining. It indicates how many hash calculations can be performed per second. A hash is a mathematical operation used in the Bitcoin protocol (SHA-256 algorithm) to validate transactions and create new blocks. The hashrate is typically expressed in units like TH/s (Terahash per second, 1 trillion hashes) or GH/s (Gigahash per second, 1 billion hashes).

Why is the hashrate important?

• Winning chances: A higher hashrate means more calculations per second, increasing the likelihood of finding a block and receiving the reward (e.g., 3.125 BTC + fees).
• Network share: An individual miner’s hashrate is considered relative to the total network hashrate (e.g., 500 EH/s, Exahash per second). Example: A Bitaxe Gamma 601 with 1.2 TH/s has a tiny share (1.2 TH/s ÷ 500 EH/s = 0.0000000024 or 0.00024%), which determines the winning odds.
• Energy efficiency: Devices with higher hashrates often consume more electricity, so efficiency (e.g., J/TH, Joules per Terahash) is crucial to minimize costs.

Example:

• A Bitaxe Gamma 601 with 1.2 TH/s performs 1.2 trillion hashes per second. With a network hashrate of 500 EH/s (500 quintillion hashes/s), the chances of finding a block are low (~1:5 million/day) because the difficulty adjusts dynamically to the network hashrate.
• A NerdQaxe++ with 4.8 TH/s has four times the hashrate and thus better chances, but also higher power consumption.