About Btc price this Year
Despite the steady decline in Bitcoin prices, the network hashrate continues to increase astronomically. Why are miners contributing more computing power to mine a cryptocurrency that has struggling from over the past five months?
1- From an Economic perspective regarding power Expenses in mining, it makes no sense for miners to spend more money mining Bitcoins when the price continues to struggle.
2- As we discussed earlier in past that $8,600 is the breakeven price for bitcoin mining. In 2018, Bitcoin has struggled to stay above that price mark. However, network hashrate continues to rise even higher despite the fact that the market has lost half of its value since December 2017.
3- It is proof that miners have full confidence in the crypto. Thus, they are willing to ignore the market current nature by contributing more resources to mine Btc.
Otherwise, it would make more sense for them to divert their resources to mining other cryptos.
4- Bitcoin mining isn’t for charity. It is a business. Miners earn rewards in Bitcoin for successfully mining a block. We also believes that the price decline gives miners an opportunity to accumulate Bitcoins at much lower prices in anticipation of the next price rally
5- Bitcoin price will soon begin to reflect network growth. We analyze a convergence between fundamentals and market indices by the third quarter of 2018. If that is the case, then the number one crypto could be set for another moon🚀