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A harsh blow was inflicted on the cryptic miners in the current bear market. This affected both large-scale and small-scale miners alike. It is above all for the most important miners who have invested millions of dollars in the mine while profits fall. It is also the case of the small miners who were actually driven out of the mining world of BTC.
It's not a problem with Crypto
While some think it's a problem with how cryptography works, Autonomous Partners' MD, Arianna Simpson, believes that this is, in fact, part of BTC's design. Simpson recently tweeted that the miners are closing and that the level of difficulty is part of the project.
Current problems
The Bitcoin hash rate continued to grow in 2018. However, the latest price drop saw the BTC reach a minimum of $ 3,600. This forced a large number of miners to close the shop. This brought the hash rate to 33.4 million TH / S from 60 million TH / S down by almost half.
Because of this trend, it will lead to a balance between the revenue from mining and the cost of the extraction of BTC. This will depend on various factors such as the price of BTC and whether the hash rate will drop to a new low. Miners will immediately return to the mining world, which in turn will increase the hash rate over time.
BTC is around $ 4,100. This represents a decrease of around 3%. It has a market capitalization of around $ 72.3 billion and is still the largest crypto by market capitalization. So far, it represents about 53% of the encrypted market.
The hash frequency of BTC
The price of BTC has been steadily declining over the last 11 months. This makes it one of the longest bear markets the BTC has ever experienced. Despite falling prices, the hashing rate of BTC continued to grow. From May to September, the hash rate doubled despite a fall in prices of around 30% over the same period.
Things went so badly that even the big miners were forced to close their operations. It peaked in October and then suddenly started to slip, reaching about 50% of its original high at the beginning of December.
Leaving miners
A market analysis shows that around 600,000 to 800,000 miners had been cut off in mid-November. This is based on data from mining pools. The problem mainly concerns miners using old hardware. However, those with modern miners are still in the industry.
One of the main concerns of this is that it will only lead to a few miners in the industry. It would mean that mining power will be centralized. It could make it easier to conduct a 51% attack on the BTC. If this happens, it could destroy the entire world of BTC. Beyond that, it would end any confidence that the major investors have in encryption.
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