New Tactics from Miners Leading to the Doubling of BTC Hashpower Rates
Sam Doctor, Fundstrat analyst believed that Bitcoin Core (BTC) hashpower had doubled since just before the start of summer. He tweeted “Even with upgrades to existing equipment, implies almost 1GW of new power consumption vs. 5.2GW in May ‘18m.” “Breakeven now $7,300 ($5,300 cash BE) vs. $6,000 in May.” According to an exchange report, it is possible that miners could be accepting short-term gains in favor of market position.
Increases in the BTC difficulty and hashrate, as indicators go, are considered as advantages that add robustness and resilience to the network. Concerned proponents say that the fact that miners might keep plodding along in a bear market, and in the face of huge price drops and their own profits, appears to be an indicator of better days ahead for all.
A theory backing this phenomenon has been observed with the crypto exchange Bitmex. According to them, powerhouse mining operations like Bitmain have welcomed the fact that market prices are bottoming out, as they believe it will push out weaker hands and help increase its relative position.
“These low prices are likely to be a deliberate strategy by Bitmain,” the exchange explains, “to squeeze out their competition by causing them to experience lower sales and therefore financial difficulties. In our view, herein lies the key to one of the main driving forces behind the decision to IPO. A successful IPO may increase the firepower available to continue this strategy and eliminate an advantage rivals could have by doing their IPOs first.”
Since May, Bitcoin Core hashpower has increased 2 times, near 70 per cent price slide. If media sourcing is to be believed, then Fundstrat, the favorite Wall Street investment firm of the cryptocurrency community is responsible for that.
“Despite BTC bear market,” Fundstrat’s analyst Sam Doctor tweeted, “hashpower doubled since May to 57 EH/s – Even with upgrades to existing equipment, implies almost 1GW of new power consumption vs. 5.2GW in May ’18. Breakeven now $7,300 ($5,300 cash BE) vs. $6,000 in May.”
