Crypto markets are down, time to panic? Miners don’t think so.

0

Crypto markets are down, time to panic? Miners don’t think so.
0

Crypto markets are down, time to panic? Miners don’t think so.
0

While the price of Bitcoin may have decreased by around 75% in the last 8 months, the hash rate has increased by around 500%. The hash rate is the processing power contributed to the network. Right now the hash rate is sitting around 50,000,000 tera hashes. That’s the equivalent of 50 million computers each performing 1 trillion calculations per second.

Some would contribute the growth to the increased productivity of ASIC miners. While that is definitely a factor, these increases in hash rate can be found in cryptocurrencies that use GPU mining as well.

Others say the discrepancy between price and hash rate may simply be caused by a lack of understanding. Generally speaking, miners have a strong technical understanding of cryptocurrency. They understand its value and use it regularly. On the other hand, many investors have have absolutely no understanding of the technology at all. This may make them susceptible to emotional decision making, such as panic selling at a loss.

While Peter Schiff and many other prominent figures say this is the beginning of the end for Bitcoin, there are obviously many in the mining industry that disagree. Is Bitcoin a passing fad? Or are the critics simply misinformed? Only time will tell.

Mess of Media’s cryptocurrency reporting is for informational purposes only. Our reporting should not be considered financial advice. Participation in the crypto market is at your own risk.

Share this article
FACEBOOK
TWITTER
Reddit