Can a High Hashrate Negatively Impact the Network?

While a high hashrate is generally a sign of a secure network, it can have potential negative consequences. The primary concern is the environmental impact, as a high hashrate corresponds to high energy consumption.

Another issue is the centralization of mining power; as hashrate grows, it often becomes concentrated in the hands of a few large mining pools or hardware manufacturers with access to cheap electricity and specialized equipment. This centralization can undermine the decentralized ethos of the cryptocurrency.

Finally, it raises the barrier to entry for new miners, making it harder for individuals to participate.