I would like to point out, as a way of illustration, that I happen to have about 4.4 MHashes at my disposal. If the mining rewards were fair and rational, that means if I point my rigs to solo mine catcoins over an extend period of time, I should be seeing a block solution happen an average of every 100 minutes (10 minutes per block, since 4.4 MHashes is 10% of the hash power, I should get one every 10 blocks). But it doesn't work that way right now. Sometimes, the difficulty is such that I'd have to mine 40 minutes for a block to be found (meaning, I'd have to mine an average of 400 minutes to get my 1 block solution). Other times, the difficulty is low, but bunch of coin hoppers come and dilute my contribution, so even though blocks are being found every 2 minutes, I don't have enough hash power to get in on finding a block every 10 blocks, to make up for losses from the slow difficulty times. Maybe during high difficulty times, I am earning 1 block out of 10, but at only 1/4th the potency (so 25% earnings), and this is 75% of the time. The low difficulty times, I am earning maybe 1 block out of 30, but they come every 2 minutes, so my earnings are maybe 160% the expected, but only 25% of the time. .75 x .25 + .25 x 1.6 = .45, meaning I am only getting 45% of my fair reward of 1 block per 100 minutes, i.e., I would be average only 1 block found per 222 minutes. The other 122 minutes' worth of coins are going to some anonymous coin hopper for their "valuable services" to me of showing up when difficulty is easy and diluting my work. The numbers may not be exact, but they demonstrate the principle. And you ask about why the network hashrate is low.

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