Bitcoin’s Hash Rate is Telling a Bullish Story
Bitcoin is having a bright future
Many investors are beginning to wonder whether Bitcoin is just another passing fad. This particular week has been hard for Bitcoin which is currently trading at 7,800 dollars which is the level it had broken out in early April when it seemed to move towards the 10,000 dollar mark. The general cryptocurrency market is also declining having lost 400 billion dollars from its all-time high in December when its market cap was around 830 billion dollars. The cryptocurrency market cap has nearly been cut by half because of the major price declines in every digital currency in the market. Other than the price decline and decline in the market cap one area which is still growing is the hash rate. This could mean that most of the minors are seeing something we don’t see.
Looking at the analysis on Blockchain.info you will realize that there has been increasing in hash rate during the months when there was sell-off and even after the sell-off. Comparing the price and the hash rate you could be surprised why prices are falling while the hash rate is increasing. It’s true that miners are still joining the network which increases the hash rate. This is a clear indication that even though the price of Bitcoin may be going down miners are still very interested in mining.
The increasing hashing rate also means that the overall outlook on Bitcoin is bullish in the eyes of the miners. This is because they cannot allocate their resource to mine a coin they believe is not worthy. This dropping Bitcoin prices could be good for miners who want to accumulate more Bitcoin when the prices are low and then wait to sell them during the next Bull Run.
Very few traders focus on fine details like hash rates because most of them only focus on the technical outlook. If the hash rate and the Bitcoin price were falling in the same rate, then that could be a big cause of concern. The current hash rate is a clear indication that miners are looking at Bitcoin on a long-term point of view and ignoring the short-term fall in prices. This reason is good enough to make investors confident.
It’s also good to know that miners are the most important people in Bitcoin market because they do the work of creating new blocks and also verifying transactions to ensure that the Bitcoin network is secure. This miners who are in a very good way supporting the Bitcoin network are showing that Bitcoin is extremely strong and well positioned for the future. Without these strong miners who support the network, it’s true that Bitcoin future could be termed as slim, but their bullish way means that we still have a great long-term future as Bitcoin family.