Bitcoin Hashrate Climbs to Display Satisfied Investors
Bitcoin’s hash rate, a display of how secure the blockchain is through computing power, has gradually increased even after Bitcoin managed to lose a massive 70% of its value since the beginning of 2018.
David Sapper of Blockbid, its acting COO at the Australian exchange, spoke during a recent interview, saying that Bitcoin’s hash rate climb displays a generally satisfied investor community on the long-term outlook of the mother coin. Sapper states that the climbing hash rate is evidence of overall happiness in terms of the long-run given that investors are more than satisfied with what they currently have, even when losses are evidently possible.
Within a bear market, cryptocurrency mining results in less valued reward due to the same number of assets used to mine for cryptocurrencies, including power, electricity and other resources. As an example, if cryptocurrency mining of Bitcoin and it’s difficulty level holds even after its price drops, in this scenario from its ATH of $20K to down around $8K, the miner will only be able to sell off the Bitcoin acquire from mining at $8K even though the miner could acquire $20K for each successful Bitcoin mined. As expected with the plummet in BTC’s value, investors were expecting its mining level to drop as well the hash rate.
Despite the expectations, Bitcoin’s network saw the rate of hashing climb at a significant rate through the bear-dominated market this year. In light of this, the CEO, managing of the largest Australian digital currency exchanges, proposes that the ongoing and steady climb in BTC’s hashing displays investor patience and confidence that the coin, as well as the entire cryptocurrency market, will make a strong comeback. Genesis Mining head executive, Marco Streng, proposed his own explanation, saying that it simply displays the accelerated expansion of the international crypto-mining industry and leading figures like Bitmain have continuously developed stronger and enhanced mining rigs consistently.
He highlights that biggest miners operating intricate and advanced machinery in regards to mining is well-equipped enough to cover any massive decline in miners that are under-equipped in competing with industrial giants. Streng stated that as of now, significant growth is currently underway, most notably on more effective miners. The current growth is significantly large to the power that it makes up for any drop in under-performing miners.
Both reviews from the CEOs are positive and indicate the current climb is a result of the accelerated expansion of BTC mining.