This year develops from many reasons, the most dramatic in living memory, even for the Bitcoin price. Now the Hash Rate returns, however, quickly indicates that the Mining industry has not abandoned the crypto-currency no 1 yet.
The difficulty in the Bitcoin network, one of the masterpieces of Satoshi Nakamoto, as a reaction to the increasing competition among the miners again. In fact, the difficulty is back to the level from the time when the BTC price was over 8,000$.
Contents
Miners are interested, despite the recent volatility, is still very similar to Bitcoin
If you were to check the Bitcoin price today for the first Time, after you’ve been with him since the beginning of the year ignored, would you have missed that 2020 was an event-free year. The leading crypto-currency is now traded at just under 7,300 in dollars, after you had opened the year with approximately 7.230 dollars.
Everyone who has followed the industry and the current happenings, the see but a little different. After a steady course in the first one and a half months of the year, Bitcoin crashed due to a Coronavirus-induced panic, which was triggered by the Failure of an agreement between the OPEC and Russia to support Oil prices, in some markets, from a High of almost 10.400 $ to under 4,000$.
This dramatic crash only lasted a month, with the largest part of the decline took place in just a few hours in March.
The strong price decline will not be frightened, only the investors, but also caused a decline in the Hash Rate in the network. Since the Bitcoin Mining is of huge amounts of electricity are dependent on the profitability of the use of Hash-Power in the network relative to the price of Bitcoin itself.
Since the Miner switched off their machines at lower prices, also declined to reduce the difficulty of a new Block.
Since the massive drop in prices, the investors are now returning but. With the increase of the price above the level of the Opening in the year 2020, the Miner returned.
Industry observers and CIO of Altana Digital Currency Fund Alistair Milne points out in the Tweet below that also in the Bitcoin network, the difficulty will increase again:
With the Loading of the Tweets, you accept the privacy policy of Twitter.
More content, download Twitter Tweets to learn more and unlock
As Milne emphasized above, is the difficulty of the network back to a level last seen in prices over 8,000 dollars. It is obvious that the crash to below $ 4,000 a was sufficient to the Mining industry to deter permanently.
Rise in price before the Bitcoin halving
Although recent global events have instilled investors with a long time, a feeling of fear, there is a price and Hash-Rate is now on an upward trend. This growth is likely to be driven by the imminent halving ahead.
Many analysts believe that the sudden scarcity of the Bitcoin supply by the halving will be a catalyst for higher prices. Some even assume that the bisection will lead to a rally in the BTC to a new all-time highs and far beyond.
Others argue that the current economic policies introduced by Central banks around the world, represents a strong support for the scarce digital asset. The basic idea is that in a world with a potentially infinite number of dollar the Bitcoin price is still much higher it must rise.
While the exact cause of the buying pressure is a matter of speculation, suggest latest findings in the case of Bitcoin, SV, that the halving will actually have a strong influence on the mood of investors. The controversial crypto-currency BSV recovered yesterday to be relatively strong – only a few days before of their own half.
Whether this also applies to Bitcoin (BTC), we will find out in about a month.