Bitcoin miners see a bullish breakout on the horizon

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Bitcoin's price rose above $ 8,000 last Tuesday for the first time from May after a Group 20 meeting (G20) in Argentina ended with little urgency to undertake a regulatory action on cryptocurrencies. In a statement, the G20 finance ministers and central bank governors expressed confidence that the technology behind the alt coins can "bring significant benefits to the financial system and the economy in general. "

Many of these benefits were discussed in the interview with Marco Streng, & nbsp; co-founder of Genesis Mining, the world's largest bitcoin mining company Last week Genesis has achieved tremendous success while the South Carolina securities regulators have liquidated their cease-and-desistances orders since March.The move, according to CoinDesk, marks the first time breaking these orders & nbsp; against a startup blockchain.

Further support arrived thanks to a report dated 16 July (19659010) Financial Stability Board (FSB), based in Switzerland, which concluded that "as a crypto asset in general, crypto-asset platforms pose no risk of global financial stability. "Trading platforms include Coinbase, the most popular by far Bitfinex, Kraken and many others.

Starting at its low of $ 5,850 at the end of May, the bitcoin was nearly 44% on June 24th before withdrawing the decision of the Securities and Exchange Commission (SEC) not to approve a bitcoin ETF deposited by Cameron and Tyler Winklevoss. (It was last Friday over $ 8,000.) I believe the bitcoin fundamentals are lining up for a higher significant move, its price It has already broken sharply above the 50-day moving average

But it is still very early in the investment encryption: only 10 years ago the mysterious Satoshi Nakamoto wrote the & nbsp; whitepaper now famous & nbsp; which led to the creation of bitcoins.The volatility is still about six times higher than the large capitalization and gold shares in a single trading session, and 11 times more high in 10 days. As I said & nbsp; Market One Media & nbsp; recently, space remains speculative, but there are opportunities for huge increases.

Bitcoin hash rate is telling a bullish story

Among the most bullish signals is the hashish rate fast-growing bitcoin In simple terms, a "hash" is a calculation made by a bitcoin miner in an attempt to secure a block premium, which is currently 12.5 bitcoins per block. (The premium is automatically halved each 210,000 blocks At the current mining rate, the next halving is & nbsp; estimated at May 2020, & nbsp; after which the premium will fall to 6.25 coins. hash rate ", then, indicates how many calculations are performed per second worldwide.It generally reflects the pace at which new miners join the network.

Every 10 minutes on average a new block is extracted, that is to say 1,800 bitcoins – or $ 14.8 million at today's prices – they are created every day of the week. The Blockchain technology, recalls, guarantees the validity of these new virgin coins. Imagine if the stock trade was fast, efficient and worry-free like crypto-mining. Now you can see why JPMorgan, Citigroup, Bank of America and other big banks are rushing to patent blockchain processing systems.

See the table below. The bitcoin hash rate continued to grow at a surprising pace despite the selloff, suggesting that the miners are still very bullish on future prices.

In July, the number of transactions exceeded 45 trillion per second for the first time ever. This is a power increase of over six times compared to just a year ago. It also means a huge recovery after the vast floods in Sichuan, China has eliminated significant amounts of hashing power at the beginning of the month.

The mines do not consume as much power as the previous thought

Speaking of bitcoin mining power, critics often like to point out how much electricity the network consumes, in an attempt to transform public opinion against the industry. Actually, bitcoin mining and other cryptocurrencies require a lot of energy, but the figures you may have seen are very exaggerated. Some sources claim that the sector's demand is equal to 65 terawatts per hour (TWh), or 65 trillion watts per hour, on an annual basis. But a more accurate estimate is closer to 35 TWh, "less than the annual energy consumption of Luxembourg, a country of 585,000 people", according to & nbsp; CoinShares Research & nbsp; analysts Christopher Bendiksen and Samuel Gibbons.

How did Bendiksen and Gibbons arrive at this figure, and why is it so drastically lower than other estimates? Analysts point out that the efficiency of the hardware has almost doubled every year (81%), while the cost of hardware is almost halved on an annual basis (-48%). This means that miners are increasingly able to do much more for much less. Miners also prefer to operate in colder climates, which lower cooling costs, and to a large extent rely on low-cost green energy. This is part of what attracted me & nbsp; HIVE Blockchain Technology, & nbsp; who carries out most of his business in Iceland and Sweden.

"Our total results suggest that the bitcoin mining industry is relatively healthy, profitable and continues to grow at dizzying speeds," write Bendiksen and Gibbons. "The hash rate has tripled on an annual basis, while the efficiency of the hardware is increasing rapidly and costs are falling."

It is now possible to trade cryptographic titles on Coinbase. When will we get an ETF?

Investors have an increasing number of options to gain exposure to bitcoins and cryptocurrencies, in addition to the purchase of the assets themselves. There are several publicly traded companies that have started integrating blockchain technology into their businesses, such as IBM and Hitachi. Other companies have a direct involvement in the mining sector of the encrypted: HIVE Blockchain, for example, and the Chinese Bitmain, which is seeking funding for 1 billion dollars before a possible initial public offering (IPO). Bitcoin futures are available for trading on the CME and CBOE. And Coinbase has just received SEC approval to "move forward with a trio of acquisitions that could enable it to become one of the first federal-regulated locations for the exchange of digital currencies held to be securities", according to & nbsp ; Bloomberg.

But so far a bitcoin ETF has not yet been made available. I believe that once a product of this type is available on the market, the price of bitcoin will really take off.

Just look at the table below. Gold was traded mostly during the '80s and' 90s. Then, in March 2003, the first gold ETF appeared, and the price of yellow metal soared to 420% when trading became more liquid and slimmer. I can not say that bitcoins respond in the same way, of course, but a cryptic ETF will surely attract more curiosity in space.

There is no lack of interest from investors in a bitcoin ETF. A recent survey conducted by an international law firm & nbsp; Foley & amp; Lardner & nbsp; found that almost three-quarters of the participants, 72%, hoped to have the opportunity to invest in an ETF that holds bitcoins or other cryptocurrencies.

As I said earlier, the Winklevoss twins have now made two (unsuccessful) attempts to bring one to market, and the SEC said it will postpone the decision on five other proposed ETFs until September. Even if they get knocked down, we'll get close to have one every day.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate for each investor. By clicking on the link (s) at the top, you will be redirected to third-party websites. U.S. Global Investors does not endorse all information provided by this / these website (s) and is not responsible for their / their content. The S & S index P 500 is a weighted index for the widely recognized capitalization of 500 common stock prices in US companies. The standard deviation is a measure of the dispersion of a set of data from its average. The more distant the data, the greater the deviation. The standard deviation is also known as historical volatility. Frank Holmes has been appointed as non-executive chairman of the Board of Directors of HIVE Blockchain Technologies. Both Holmes and global investors in the United States hold HIVE shares, directly or indirectly. U.S. Global Investors, Inc. is an investment advisor registered with the Securities and Exchange Commission ("SEC"). This does not mean that we are sponsored, recommended or approved by the SEC, or that our capabilities or qualifications have in any way been passed on by the SEC or any SEC official. This comment should not be considered a solicitation or offer of any investment product. Some materials in this comment may contain dated information. The information provided was updated at the time of publication.

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Bitcoin's price rose above $ 8,000 last Tuesday for the first time since May after the Group meeting 20 (G20) in Argentina ended with little urgency to undertake a regulatory action on cryptocurrencies, in a statement the G20 finance ministers and central bank governors have expressed confidence that the technology behind the alt-coins " can bring significant benefits to

Many of these benefits have been discussed in my interview with Marco Streng, co-founder of Genesis Mining, the largest bitcoin mining company in the world. a big win last week came from South Carolina Securities Regulatory Authorities who have liquidated their cease-and-desistancy orders since March. The move, according to CoinDesk, marks the me the state dropped such orders against a startup blockchain.

Further support came courtesy of a report dated 16 July Financial Stability Board (FSB), which concluded that "as a crypto-asset in general, Encryption of resources does not pose risks of global financial stability. "Trading platforms include Coinbase, the most popular by far Bitfinex, Kraken and many others.

Starting at its low of $ 5,850 at the end of May, the bitcoin gained nearly 44% June 24 before withdrawing the Securities and Exchange Commission (SEC) decision not to approve a bitcoin ETF presented by Cameron and Tyler Winklevoss . (Friday was over $ 8,000.) I think the bitcoin fundamentals are lining up for a higher significant move, its price has already broken sharply above the 50-day moving average.

Remember, however, that we are still very early in the encryption of investments. Only 10 years ago the mysterious Satoshi Nakamoto wrote the whitepaper now famous which led to the creation of bitcoins. Volatility is still about six times higher than large capitalization and gold shares in a single trading session, and 11 times higher in 10 days. As I said Market One Media recently, space remains speculative, but there are opportunities for huge increases.

Bitcoin hash rate is telling a bullish story

Among the most bullish signals is bitcoin's rapidly growing hashing rate. In simple terms, a "hash" is a calculation made by a bitcoin miner in an attempt to secure a block premium, which is currently 12.5 bitcoins per block. (The prize is automatically halved every 210,000 blocks.) At the current mining rate, the next halving is estimated at May 2020, after which the premium will drop to 6.25 coins. , indicates how many calculations are performed per second worldwide.It generally reflects the pace at which new miners join the network.

Every 10 minutes on average a new block is drawn, namely 1,800 bitcoins – or $ 14 , 8 million at today's prices – they are created every day of the week.The Blockchain technology, remember, guarantees the validity of these new virgin coins.Imagine if the trading of shares were fast, efficient and worry-free as crypto-mining. see why JPMorgan, Citigroup, Bank of America and other big banks are rushing to patent blockchain processing systems.

See the table below.The bitcoin hash rate continued to grow at a surprising pace despite the selloff, suggesting that the miners are still very bullish on future prices.

In July, the number of transactions exceeded 45 trillion per second for the first time ever. This is a power increase of over six times compared to just a year ago. It also means a huge recovery after the vast floods in Sichuan, China has eliminated significant amounts of hashing power at the beginning of the month.

The mines do not consume as much power as the previous thought

Speaking of bitcoin mining power, critics often like to point out how much electricity the network consumes, in an attempt to transform public opinion against the industry. Actually, bitcoin mining and other cryptocurrencies require a lot of energy, but the figures you may have seen are very exaggerated. Some sources claim that the sector's demand is equal to 65 terawatts per hour (TWh), or 65 trillion watts per hour, on an annual basis. But a more accurate estimate is closer to 35 TWh, "less than the annual energy consumption of Luxembourg, a country of 585,000 people", according to CoinShares Research analysts Christopher Bendiksen and Samuel Gibbons.

How did Bendiksen and Gibbons arrive at this figure, and why is it so drastically lower than other estimates? Analysts point out that the efficiency of the hardware has almost doubled every year (81%), while the cost of hardware is almost halved on an annual basis (-48%). This means that miners are increasingly able to do much more for much less. Miners also prefer to operate in colder climates, which lower cooling costs, and to a large extent rely on low-cost green energy. This is part of what attracted me HIVE Blockchain Technology, who leads most of his business in Iceland and Sweden.

"Our total results suggest that the bitcoin mining industry is relatively healthy, profitable and continues to grow at a loss," write Bendiksen and Gibbons. "The hash rate has tripled on an annual basis, while the efficiency of the hardware is increasing rapidly and costs are falling."

It is now possible to trade cryptographic titles on Coinbase. When will we get an ETF?

Investors have an increasing number of options to gain exposure to bitcoins and cryptocurrencies, in addition to the purchase of the assets themselves. There are several publicly traded companies that have started integrating blockchain technology into their businesses, such as IBM and Hitachi. Other companies have a direct involvement in the mining sector of the encrypted: HIVE Blockchain, for example, and the Chinese Bitmain, which is seeking funding for 1 billion dollars before a possible initial public offering (IPO). Bitcoin futures are available for trading on the CME and CBOE. And Coinbase has just received SEC approval to "advance with a trio of acquisitions that could enable it to become one of the first federal-regulated locations for the exchange of digital coins held to be securities", according to Bloomberg. [19659068] Most Crypto investors prefer Ethereum and Bitcoin United States Global Investors