Bitcoin, Ethereum’s Hashrate Plunges

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Summary

So the bear market is starting to bite now almost exactly one year on since all time high. Meaning miners are no longer selling bitcoin to buy new hardware or to expand, to hire new employees and so on. Ethereum’s hashrate, December 2018. It took precisely one year for bitcoin’s hashrate to look like the price with its parabolic rise and now the plunge, down 50% from 60 exahashes to 30. Bitcoin has recently seen the second biggest downwards difficulty adjustment in its decade long story.

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It took precisely one year for bitcoin’s hashrate to look like the price with its parabolic rise and now the plunge, down 50% from 60 exahashes to 30.

That suggests people expected the price to continue increasing even while it was falling, so for much of the year they invested in new asics.

Now it appears they have realized that perhaps there is such a thing as maybe it doesn’t rise. It can fall too and, as we’ve seen, by quite a lot.

It is more probable, however, that they simply can’t afford any longer to keep the asics running, certainly not at a difficulty of 60 exahashes.

Ethereum too has seen quite a significant drop, from 300 terahashes to now 180 or so, with it somewhat stable or rising for much of the year even as price kept falling.

Ethereum’s hashrate, December 2018.

So the bear market is starting to bite now almost exactly one year on since all time high. The question is for how long, with the answer unknown.

As far as...

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