Hash rate that tells a bullish story

<div _ngcontent-c14 = "" innerhtml = "

While cryptocurrency claims that the market is pressing on many investors, they fear that Bitcoin is just another passing fad. Bitcoin recently broke more than $ 8000 and is struggling to find support at around $ 7800, the same level where the Bitcoin broke out at the beginning of April in an attempt to exceed $ 10,000. The overall market capitalization is also in steady decline, exceeding $ 400 billion from historical highs of over $ 830 billion.

Market capitalization has been almost halved, with consequent higher price drops in Bitcoin and almost all Altcoin on the market. Apart from the decline in prices and market capitalization, there is an area where we are seeing growth and in hash rate . This could lead us to believe that the miners know something we do not know.

Looking at the chart on Blockchain.info, we see a very constant increase in the hash rate in the months before and after the sell-off of the market. Looking at a chart of the total cryptocurrency market capitalization and the hashing rate side by side will show a clear divergence. Why is the hash rate increasing while prices continue to decline?

As a matter of fact, the more numerous miners join the network, the greater the hash rate of the network. This tells us that even if Bitcoin prices are falling at a steady pace, miners are still very interested in extracting Bitcoin.

From the presented data we can draw the conclusion that the general perspective on Bitcoin is bullish, at least in the eyes of miners. After all, miners would not want to allocate their resources by extracting a digital resource they deem worthless. The miners are in the business to make money and perhaps the crisis in this market will allow them to accumulate more bitcoins at lower prices in preparation for the next Bull Run.

Many traders focus only on technical perspectives and can overlook solid fundamentals and clues as a rising hash rate. If the hash rate were to decrease consistently with the price, then there would be grounds for concern. This would tell us that miners are less interested in extracting Bitcoin and could focus on the extraction of other cryptocurrencies or not on extraction. It seems to me that the miners are adopting a long-term vision on Bitcoin and cryptocurrencies, ignoring the short-term downward trends on the market. This fact alone should give investors the certainty that Bitcoin and mining are still very interesting. The network support is very strong and should continue to grow.

Miners are probably the most important resource for the Bitcoin ecosystem because they work to create new blocks and to verify all transactions to ensure network security. A strong group of miners willing to support the network creates the image that Bitcoin is very strong and well positioned in the future. As we approach the end of the second quarter and the third quarter, the fundamentals will continue to improve and my bet is that price action will certainly reach strong fundamentals. Without a strong group of miners to support the network, Bitcoin would surely be destined for a gloomy future. This is not the case to judge from the data. The miners are still confident in the long run like us.

Disclaimer: I own Bitcoin and other cryptocurrencies in my portfolio

">

While cryptocurrency claims that the market is pressing on many investors, they fear that Bitcoin is just another passing fad. Bitcoin recently broke more than $ 8000 and is struggling to find support at around $ 7800, the same level where the Bitcoin broke out at the beginning of April in an attempt to exceed $ 10,000. The overall market capitalization is also in steady decline, exceeding $ 400 billion from historical highs of over $ 830 billion.

Market capitalization has been almost halved, with consequent higher price drops in Bitcoin and almost all Altcoin on the market. Apart from the decline in prices and market capitalization, there is an area where we are seeing growth and in hash rate . This could lead us to believe that the miners know something we do not know.

Looking at the chart on Blockchain.info, we see a very constant increase in the hash rate in the months before and after the sell-off of the market. Looking at a chart of the total cryptocurrency market capitalization and the hashing rate side by side will show a clear divergence. Why is the hash rate increasing while prices continue to decline?

As a matter of fact, the more numerous miners join the network, the greater the hash rate of the network. This tells us that even if Bitcoin prices are falling at a steady pace, miners are still very interested in extracting Bitcoin.

From the presented data we can draw the conclusion that the general perspective on Bitcoin is bullish, at least in the eyes of miners. After all, miners would not want to allocate their resources by extracting a digital resource they deem worthless. The miners are in the business to make money and perhaps the crisis in this market will allow them to accumulate more bitcoins at lower prices in preparation for the next Bull Run.

Many traders focus only on technical perspectives and can overlook solid fundamentals and clues as a rising hash rate. If the hash rate were to decrease consistently with the price, then there would be grounds for concern. This would tell us that miners are less interested in extracting Bitcoin and could focus on the extraction of other cryptocurrencies or not on extraction. It seems to me that the miners are adopting a long-term vision on Bitcoin and cryptocurrencies, ignoring the short-term downward trends on the market. This fact alone should give investors the certainty that Bitcoin and mining are still very interesting. The network support is very strong and should continue to grow.

Miners are probably the most important resource for the Bitcoin ecosystem because they work to create new blocks and to verify all transactions to ensure network security. A strong group of miners willing to support the network creates the image that Bitcoin is very strong and well positioned in the future. As we approach the end of the second quarter and the third quarter, the fundamentals will continue to improve and my bet is that price action will certainly reach strong fundamentals. Without a strong group of miners to support the network, Bitcoin would surely be destined for a gloomy future. This is not the case to judge from the data. The miners are still confident in the long run like us.

Disclaimer: I own Bitcoin and other cryptocurrencies in my portfolio