For anyone that thinks bitcoin is going to die because the price has been going down needs to readjust their thinking.
As the price has been falling, the hash rate has been continuing to make new all time highs.
Check out the hash rate:
(Source:
)https://twitter.com/btc/status/1008713672095621120
- btc
As you can see, even as the price declines the hash rate continues to make new highs.
That means more and better equipment (and miners) is/are constantly being added to the network. Things that ultimately help make the network more secure.
It appears the fear of a mass exodus of miners due to falling prices was overblown.
But isn't it already unprofitable to mine bitcoin?
Well that is all a matter of perspective, and where you live.
In some places yes, in others not so much.
Check out this chart that shows roughly the cost of mining by country:
(Source:
)https://twitter.com/CryptoOutsource/status/1008989550033633281
- CryptoOutsource
As you can see the price of bitcoin is well under the cost of electricity in some countries, while in others, the price is still significantly above the break-even cost.
In the past when prices fell, the price of bitcoin often followed suit, though there was some lag time.
Given how far we have fallen and the fact that the hash rate continues to go up is a testament to newer and better miners being added to the network, and also likely the belief that prices are going to go back up again in the future.
Miners would not be adding new equipment and continuing to mine if they thought prices were headed to zero.
Either way, it is interesting and encouraging to see the hash rate continuing to go higher.
My expectation is that over time, mining will be a break-even endeavor, which means it will likely move to the lowest cost regions/countries and take advantage of the cheap electricity for as long as they can.
Stay informed my friends.
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