BTC - Hashrate makes new all-time high!
Bitcoin's hash rate is now again at all time highs!
So much for miner capitulation like many of the latest news articles would have you believe.
Hash rate seems very much tied to price action right now.
Any kind of positive price action and it goes back up, negative price action and it turns south.
Check out the latest graph:
(Source: https://twitter.com/Rhythmtrader/status/1209159391188008960)
As you can see, we have now turned back up and are making new highs yet again as of a few minutes ago.
Much ado about nothing?
People have been taking note of the declining or sideways hash rate for weeks now.
Mostly talking about how it was likely miners capitulating, throwing in the towel as prices drifted ever lower.
Their capitulation adding to the sell pressure and going to take prices to extremely low levels.
It appears this $7k-$7.5K is a very sensitive area as it relates to miners.
If we drift to the bottom of that range or go lower, miners are being forced to shut off the machines.
However, now being at the higher end of that range (and above it) like we've been for the past few days, the machines appear to get turned back on.
Either way, zooming out a bit and looking at the higher lows in hash rate, it still looks like there was really nothing to worry about:
(Source: https://beincrypto.com/bitcoin-hash-rate-defies-miner-capitulation-prophecy/)
We have been seeing higher lows basically the whole time.
A small sideways breather was to be expected after such a sustained move higher over the last several months.
Overall, the trend has been overwhelmingly, 'up'.
It will be interesting to see what happens to the hash rate once this next halving takes place
If miners are having trouble keeping the machines going at this price point with the current block reward, what are they going to do when that reward gets cut in half?
They either need a price of 2x higher ($14k) and/or a dramatic drop in difficulty, or they may be forced to shut down.
Interesting times we are in.
With the halving now less than 5 months away, these next 5 months should be very interesting.
Stay informed my friends.
-Doc
‘Tis the season— miners are ramping up!
Posted using Partiko iOS
They are going to need a much higher price if they are going to keep the machines on come May of next year...
As I understand difficulty of mining is high because there is way too many miners. The more miners, the more difficult mining.
If some miners drop off, then difficulty of mining will drop also, therefore miners who left will earn more. It is self-correcting system, isn't it?
Correct. Hash rate is the total computing resources put into mining bitcoin. The difficulty level is a separate measure, that does have some impact on hash rate.
To add to my previous comment that you replied to, without higher prices miners will have to turn off their machines. Though, once they do turn off their machines, the difficultly will adjust downwards making it easier (and cheaper) to mine bitcoin again which will drop the break even price. Though, a lower break even price will bring in more miners which will drive difficulty up. It's a very fluid situation in terms of cost of production.
I mean how is this any different than any other mining industry. If the price goes to low, mines shut down as they can't compete. When price goes back up they are either reopened or new more efficient mines take their place. It's all just economics and weather people can make money doing something.
It's not. :) Well apart from the difficulty adjustment.
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Yeah they need make btc go up to protect the miners and all the infrastructure they have been building over the years!! lol
Hey, it works for me. :)