Collapsed Hashrate and Depreciation Episode
Yesterday, the bitcoin hash of the network instantly fell by 40%, and by a strange coincidence, the most impressive drop in exchange rate in recent weeks occurred. The power of network devices collapsed from 98 to 57.7 exams per day, in the cost of cryptocurrency it lost more than $ 1200 (about 13%). It is also interesting that just a few days ago, the hash of the network updated its historical maximum and reached 102 exheshes per second. There is no reliable information about the causes of the incident. It is also unknown whether these events are related. Under the cut, I presented my thoughts, as well as the opinions of experts and the media covering the topic of cryptocurrencies, about the causes of the phenomenon, the impact of the situation on bitcoin mining and the prospects for the development of the asset.
At the time of writing, the hash rate has been restored to 88.3 million Th / s.
Experts are not sure whether it is worth linking these two phenomena directly, since previously significant decreases in hash rate did not significantly affect the rate. It is possible that these are just interesting coincidences. It is also possible speculative behavior of a large player who suddenly threw a large number of coins onto the market.
At the moment, no one gives the exact reason for the decrease in power. According to the assumptions of the blockchain resource, it could have occurred in connection with a massive disconnection of devices in a country with a high cost of electricity, for example, in South Korea or Canada. Most experts agree that the reason is the shutdown of a large farm.
In one of the articles on RBC, it was suggested that the decrease in power is due to the end of the rainy season in southern China and the advance movement of equipment to the north of the country. It is also interesting that in some provinces and regions of China, checks are being conducted to identify among miners violators of the law who are forced to close an illegal business.
The fall in the rate can be considered logical predicted, as many have reported that if the coin does not consolidate above the psychological mark of 10,000, a sharp failure will follow, with a bottom at the level of $ 7,500. Such data appeared in RBC, fxteam and ihodl. One way or another, this is unlikely to significantly affect the long-term prospect of bitcoin and fits perfectly into the volatile picture of the dynamics of the crypto asset's course. Most sources tend to consider the collapse of power and depreciation phenomena not directly related.
Some users from telegram chats, which discuss cryptocurrency trading, associated the fall in the rate with the news about Google's creation of the world's most powerful quantum computer. According to the Financial Times , the new device is capable of performing calculations in 3 minutes, and it will take 10 thousand years for the most powerful supercomputer to solve it.
As you know, the complexity that determines the profitability of mining for each individual piece of equipment depends on the hashrate. Its fall is guaranteed to mean that if the hash rate does not grow instantly, then one can expect a long and significant increase in the income of miners. On the other hand, a combination of factors caused a drop in prices for mining equipment.
According to Sergei Arestov, head of the Russian operator of industrial mining BitCluster, the hash rate is short-term (at the time of receipt of the comment, the hashrate has not yet been restored). The entrepreneur is convinced that the situation is connected with a major transaction on the sale of equipment in the Chinese market, which occurred yesterday. The owner carries out the transportation of devices to new sites and when they again earn the complexity will quickly recover. At the same time, Sergey Arestov is convinced that now is a really good opportunity to buy equipment for SHA-256 at a discount of 30%. In his opinion, it makes sense to buy only devices of a new type on 7 and 8 nm chips. No s9 they will not survive the upcoming halving 2020. Also now is a good opportunity to buy BTC on the drawdown, especially if we talk about the horizon from year to year.
A return to the previous complexity kills the opportunity to recoup the costs of the owners of old ASIC miners. Hopes for the operation of old equipment did not materialize. Many people believe that in order to predict the situation, it is necessary to accurately understand the causes of the hash rate drop. The inevitable halving of 2020, and the constant increase in complexity, stimulate miners to buy new equipment. This allows you to quickly increase complexity and save profits independent of the course. Despite the growing pessimism of some traders, you probably should not expect cryptozymes. The drop in the rate fueled the interest of middle-aged investors, and a decrease in power will increase the activity of new miners.
Judging by the reaction to yesterday's events, the community remains cautious optimism. Miners strive to acquire cheaper equipment. The situation also reminded everyone that a possible decrease in hashrate due to disconnection of obsolete farms after halving will allow dividing the “reward pie” into a smaller number of conditional mining “mouths”. It also supports the growth of interest in crypto emission and adds positive perceptions about the future of the Bitcoin network. Investors use the episode of the fall in the rate to buy a crypto asset. Traders are wondering which bottom the cryptocurrency will not be able to break through and when the bullish sentiment will begin. Traditionally, I will be grateful for your views on the situation. Particularly interesting are the non-trivial versions about reducing hashrate.
Photo used
Important!
Crypto assets, including Bitcoin, are extremely volatile (their exchange rate changes frequently and dramatically), exchange speculation is strongly influenced by their exchange rate. Therefore, any investment in cryptocurrency is a serious risk . I would strongly recommend investing in cryptocurrency and mining only to those people who are provided so that in case of loss of investment they do not feel the social consequences. Never invest the last money, targeted significant savings, limited family assets at all costs, including cryptocurrencies.
At the time of writing, the hash rate has been restored to 88.3 million Th / s.
The mystery of the collapse of power and course
Experts are not sure whether it is worth linking these two phenomena directly, since previously significant decreases in hash rate did not significantly affect the rate. It is possible that these are just interesting coincidences. It is also possible speculative behavior of a large player who suddenly threw a large number of coins onto the market.
At the moment, no one gives the exact reason for the decrease in power. According to the assumptions of the blockchain resource, it could have occurred in connection with a massive disconnection of devices in a country with a high cost of electricity, for example, in South Korea or Canada. Most experts agree that the reason is the shutdown of a large farm.
In one of the articles on RBC, it was suggested that the decrease in power is due to the end of the rainy season in southern China and the advance movement of equipment to the north of the country. It is also interesting that in some provinces and regions of China, checks are being conducted to identify among miners violators of the law who are forced to close an illegal business.
The fall in the rate can be considered logical predicted, as many have reported that if the coin does not consolidate above the psychological mark of 10,000, a sharp failure will follow, with a bottom at the level of $ 7,500. Such data appeared in RBC, fxteam and ihodl. One way or another, this is unlikely to significantly affect the long-term prospect of bitcoin and fits perfectly into the volatile picture of the dynamics of the crypto asset's course. Most sources tend to consider the collapse of power and depreciation phenomena not directly related.
Some users from telegram chats, which discuss cryptocurrency trading, associated the fall in the rate with the news about Google's creation of the world's most powerful quantum computer. According to the Financial Times , the new device is capable of performing calculations in 3 minutes, and it will take 10 thousand years for the most powerful supercomputer to solve it.
Last miner car or reason to buy ASIC at a discount
As you know, the complexity that determines the profitability of mining for each individual piece of equipment depends on the hashrate. Its fall is guaranteed to mean that if the hash rate does not grow instantly, then one can expect a long and significant increase in the income of miners. On the other hand, a combination of factors caused a drop in prices for mining equipment.
According to Sergei Arestov, head of the Russian operator of industrial mining BitCluster, the hash rate is short-term (at the time of receipt of the comment, the hashrate has not yet been restored). The entrepreneur is convinced that the situation is connected with a major transaction on the sale of equipment in the Chinese market, which occurred yesterday. The owner carries out the transportation of devices to new sites and when they again earn the complexity will quickly recover. At the same time, Sergey Arestov is convinced that now is a really good opportunity to buy equipment for SHA-256 at a discount of 30%. In his opinion, it makes sense to buy only devices of a new type on 7 and 8 nm chips. No s9 they will not survive the upcoming halving 2020. Also now is a good opportunity to buy BTC on the drawdown, especially if we talk about the horizon from year to year.
Mining and the return of difficulty
A return to the previous complexity kills the opportunity to recoup the costs of the owners of old ASIC miners. Hopes for the operation of old equipment did not materialize. Many people believe that in order to predict the situation, it is necessary to accurately understand the causes of the hash rate drop. The inevitable halving of 2020, and the constant increase in complexity, stimulate miners to buy new equipment. This allows you to quickly increase complexity and save profits independent of the course. Despite the growing pessimism of some traders, you probably should not expect cryptozymes. The drop in the rate fueled the interest of middle-aged investors, and a decrease in power will increase the activity of new miners.
Time for Great Expectations
Judging by the reaction to yesterday's events, the community remains cautious optimism. Miners strive to acquire cheaper equipment. The situation also reminded everyone that a possible decrease in hashrate due to disconnection of obsolete farms after halving will allow dividing the “reward pie” into a smaller number of conditional mining “mouths”. It also supports the growth of interest in crypto emission and adds positive perceptions about the future of the Bitcoin network. Investors use the episode of the fall in the rate to buy a crypto asset. Traders are wondering which bottom the cryptocurrency will not be able to break through and when the bullish sentiment will begin. Traditionally, I will be grateful for your views on the situation. Particularly interesting are the non-trivial versions about reducing hashrate.
Photo used
Important!
Crypto assets, including Bitcoin, are extremely volatile (their exchange rate changes frequently and dramatically), exchange speculation is strongly influenced by their exchange rate. Therefore, any investment in cryptocurrency is a serious risk . I would strongly recommend investing in cryptocurrency and mining only to those people who are provided so that in case of loss of investment they do not feel the social consequences. Never invest the last money, targeted significant savings, limited family assets at all costs, including cryptocurrencies.
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