Cryptocurrency miners ignore the fall in Bitcoin prices, focusing instead on expanding


The recent decline in cryptocurrency prices has cast a shadow over different aspects of digital currency space. However, an area in which this bearish outlook has not been extended is the extraction of cryptocurrencies.

The Hash Factor is an indicator

According to a report by Bloomberg bitcoin mining has remained profitable for some miners who have improved their investment and the efficiency in space – even against the continuous price of bitcoin drops.

One of the indicators of this was the increased hashrate, which is the computing capability for bitcoin mining measured on the Bitcoin network. The increased hashrate corresponds to further investments made by miners in computing power.

At the beginning of August 2018 Bitcoinist reported that the hashrate of the Bitcoin network had recorded a historical high of 52 quintillions of hashes per second. This is linked to a growth in the hashrate that began at the end of 2017 and extended to 2018. During this period, some of the largest mining operators strengthened their positions by investing in better hardware and creating operations in countries like Georgia – that offer competitive advantages in the cost of power.

These efforts have translated into efficiencies that have made mining operations viable for some operators – even if prices remain subdued.

<img class = "aligncenter size-large wp-image-64636" src = "×640.jpg" alt = "The Chinese authorities have seized more than 600 computers used for the extraction of Bitcoin [19659008] Miners dig deep for efficiency in expansion

To ensure profitability, most cryptocurrency miners is now expanding its capabilities and the industry could see more investment helping them operate near a break-even point.

Industry operators such as Marco Streng, CEO of Genesis Mining, shared this Sentiment: Streng was quoted as saying in an interview:

There are still large expansions that happen, especially from more efficient miners.The expansion is so big as to make up for the abandonment of miners not very efficient.

Another effect of any expansion of the ability There will be an increased hashrate indicating some form of long-term commitment while the miners are approaching their heels.

Speaking of this problem, David Sapper, CEO of Blockbid Pty Ltd. – an exchange of cryptocurrencies in Melbourne, Australia – said:

The increase in the rate of hashes means that people are here to long term time because they are happy to accumulate only what they have, potentially even at a loss.

Do you think miners can continue to bet against price volatility by using production efficiency? Let us know in the comments below .

Image courtesy of Shutterstock.

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