The hashrate continues to climb for ol bitcoin.
We are approaching levels not seen since, well, ever.
We are now over 80,000,000 TH/s.
That is getting close to 3x where we were in December.
Our friend Max Keiser says that prices will follow the hashrate.
(Source:
)https://twitter.com/maxkeiser/status/1027323211720151040F
- maxkeiser
Why is that?
According to Keiser the price of bitcoin will follow the hashrate.
The hashrate is a sum of all the computing power being put in to mine and secure the bitcoin network.
According to him, as those resources continue to go up, the price will go up as well.
Right now, prices are playing catch up.
As the network becomes more and more secure, that will increase investor confidence, which will help people feel better about investing in bitcoin.
Again, this is all according to Max Kesier.
Is this really true?
I am not sure, I am having trouble finding any compelling evidence to suggest that bitcoin prices follow its hashrate.
However, if you look at a chart of the hashrate since inception, and the bitcoin price chart, they both pretty much trend from the left to the right in a 9 year bull market.
The only question is whether hashrate causes prices to go up, or whether prices going up causes the hashrate to go up.
I would actually argue the latter makes more sense.
As the price goes higher the more profitable it becomes to mine bitcoin. For that reason, more and more miners show up thus driving the hashrate higher.
I actually think the hashrate is a lagging indicator and is playing catch up to the price.
Hopefully I am wrong and ol Max is right.
Stay informed my friends.
-Doc