The Bitcoin Post Halving Depression arrived at the most. The interest in Bitcoin and crypto-currencies has fallen in the last few months and many doubts already currencies of the future of BTC and Crypto. But so bad, the situation is not current at all. If we do not look in the direction of Mining, this is only for a large part of the offer on the markets, but also the most important safety aspect is that you get a different picture.
The Hashrate has reached a few days ago, a new all-time high. In addition, the Difficulty, so the difficulty yesterday has risen to find a Block, to a new record high. If it should continue to remain at such a high Hashrate, then increase the next Difficulty adjustment by a further 9% and thus, all of the Miner even more pressure.
What does that mean and what conclusions can we draw from this, you can find out in this article.
Bitcoin Hashrate and Difficulty
Behind the Hashrate of Bitcoin is many different Miner, the search with their machines after the new blocks are hidden. The Block Rewards, so the rewards for Finding a valid block represents, currently, the highest Motivation. However, the transaction fees are no longer to be despised.
In order to prevent that more and more miners join the Business and to the new blocks, and thus new Bitcoins are looking for, let Satoshi Nakamoto what an ingenious idea – Difficulty adjustment. The Difficulty determines how hard it is to find a new Block. By the adjustment of this Difficulty is achieved in that a Block in average is found every 10 minutes, regardless of how much Hashrate in the network flows.
This guarantees that not only blocks are to be found slow or too fast, but also that the specified production rate of the BTC is observed. No one will be able to produce more BTC than intended, no matter how much energy and work he invested.
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The trust in Bitcoin and the Difficulty adjustment
Although the Halving of the revenues of the Miner in BTC from one to the other Block half, is the Hashrate up to a new all-time high increased. This clearly shows how confident the Miner in relation to the future of the Bitcoin price. The Miner speculate namely, only with a much higher risk of the Investment and the running costs for the Mining Business.
However, the last Difficulty adjustment, which has also reached a new all-time high, the Miner, more and more under pressure. For every Miner, it’s become harder and harder to find new blocks. Thus, the Miner has to invest even more in order to get the Chance to find a Block. This could lead in the worst case, some of the Miner to surrender or out of the Business in the short term, get off to on a Difficulty adjustment to be seen below.
If the hash rate remains the same over the next 13 days unchanged, it will be a Difficulty adjustment of about 9% to the top. Then, it is assumed that the Hashrate will decline again. It is an eternal game that the Hashrate, the Difficulty and the Bitcoin exchange rate is determined. An incredibly exciting but also very risky Business. The perfect protection to ensure a decentralized money is sufficient.
The intrinsic value rises
At this point, many are not agree but Bitcoin has an intrinsic value. Some would see this in the basic features of the BTC, such as decentralization, security, censorship resistance, scarcity, etc., Others see the intrinsic value in energy, which has to be applied in order to produce a Bitcoin.
If we go to the necessary work to produce a BTC, then the intrinsic value to the Bitcoin Halving has risen extremely. The Hashrate is on a new all-time high, and it is only produced half of BTC before the Halving.
Bitcoin’s Energy Value just hit an all-time high. #Bitcoin’s intrinsic value has never been higher.
How can you be bearish? pic.twitter.com/ncU6U3SM8u
— Charles Edwards (@caprioleio) July 6, 2020
On the other hand, the Hashrate will be determined by the Bitcoin exchange rate and not the other way around. Thus, many miners will switch off their machines for the time being, if the BTC rate should be strong to collapse. Then it would be easy to produce for many of the Miner under these conditions is worthwhile Bitcoins. Then the costs would exceed the revenue and the Business not make it more profitable.
Nevertheless, the Confidence, the miners hope that a rising price. Because we must not forget that the supply of new BTC has fallen since the last Halving the half. This can lead in the next few years quickly to a demand overhang and the Bitcoin exchange rate in trade. And then the next Halving is already ready in 2024 and will halve the offer again. Here hits consistent to rising demand on the steadily falling supply. What is the long-term result, can think of any yourself. Whether it comes at the end, so, of course, can not currently say no but the odds are bad.
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