According to a report given by Sam Doctor, an analyst with Fundstrat, the hashpower of Bitcoin has seriously gone up just in time for the summer. With the approaching deep bear market put into consideration; such a figure is quite impressive.
An Increase Since May
Looking at the market indicators, the increases in the Bitcoin core hashrate and difficulty of mining are regarded as benefits, and they add resilience and robustness to this great network. The fact that Cryptocurrency miners could be soon able to plod along in the approaching bear market could be an indication of better times ahead. Bitmex, a reputable Crypto exchange platform has offered a reason why this could be taking place.
They have stated that powerhouse-mining activities like Bitmain have, in the long run, accepted the new pieces in the market bottom out. The exchange went ahead to explain that the low prices witnessed recently could be nothing but strategies employed by Crypto gurus, Bitmain. An initial Public Offering that is successful may increase the hashpower available so that the strategy can be continued. This might also be used to do away with the advantage the market rivals might have by just ensuring they have their Initial Public Offers first.
70% Price Slide
The hashpower of Bitcoin Core has increased and doubled up the figure it had back in May. This has occurred even as a close to 70% slide is being witnessed. According to Sam Doctor, an analyst with Fundstrat, the hashpower of Bitcoin Core doubled up since the month of May to 57 EH/s. This can be translated to mean 1GW of the new power consumption is up against the 5.2 GW that was back then in May 2018.
New Market Position By Bitmain
If the amount of hashpower goes down as it is expected, then the mining difficulty will definitely come down. There is also some truth in the inverse to this, as it becomes difficult for Cryptocurrency miners to get blocks when the difficulty has been raised.
This, in return, means that the miners will be paid way much less. In addition to that, Bitcoin rewards change close to each four years of its operation. Therefore, mining revenue is entirely at the mercy of the volatility and difficulty of mining a Crypto. So, it is a bit controversial to discover that as the price of Bitcoin plummets, alongside the revenues for mining, the hashrate would also come down as quick as possible. Mr. Doctor has a completely different opinion.
As a matter of fact, in as little as just as six months, miners normally appear eager to not either slow or pack up. They appear to be accepting nothing but less profits. The head of Fundstrat, Tom Lee, who has been so active in this market, also appear to be supporting Mr. Doctor’s point. He indicated this in a recent tweet that he made. According to him, the updated estimates on the cost of wholly loaded breakeven now stands at $7300 up against $6000.