The Price of Bitcoin is Falling, but the Demand for Mining is Increasing
Experts of the cryptocurrency market noticed one paradox. Despite the fact that the price of BTC is declining, the demand for mining of this digital asset is increasing. Recently, bitcoin prices have fallen by 75%. At the same time, the mining of this cryptocureency increased by 300%, in comparison with the indicators of the beginning of this year. The trend of increasing demand for mining of cryptocurrencies was noticed in the last two months. At the same time, during this period, the price of a cryptoacurrency dropped from 9 to 6 thousand US dollars per 1 BTC.
Miners in search of breakeven point for a token
Most of the miners, now, are alarming. In particular, we are talking about the possible loss of generation of crypto tokens. While there are altruistic moods of the miners who don't lose hope to earn in the short term, one point remains curious. The matter is that all transactions connected with bitcoin stopped at the mark of 200 thousand operations per day. This indicator is 4-5 times lower than similar actions associated with the Ethereum. With an increase in the mining of cryptocurrencies, the priceof electric energy as well as the equipment used are increasing.
"Breakeven mining costs are around $5700-5800 at 8 cents kwh... there is zero chance chance bitcoin could ever goto $1,000 unless some catastrophically bad news came out. Better chance of winning the lottery."
Most of the crypto community still believes that Bitcoin mining is fully paying itself. Even provided that in the future the cost will decrease. There are certain groups of miners who believe that even if a value of $4,400 is set, it will be possible to go to "zero" costs. Thus, the current value is not very catastrophic.
Today we can say that the market of cryptocurrency is in balance, on the basis of the modeled management and actions. At the same time, there is no unanimous opinion about the breakeven nature of the cryptocurrency. It is generally accepted that not all hashed capacities can simultaneously enter the Internet at the same speed.
Investors are looking towards other crypto assets
Mining is now at the peak of its growth. At the same time Bitcoin has a tendency to decrease. Some experts believe that 6 thousand dollars is not the limit and the price will fall further. Against the backdrop of all this, there is talk of a change in the algorithm for mining. First of all, it indicates that ASIC-devices in this situation will not be relevant and therefore, it is necessary to look for other models for mining cryptocurrency.
In the past few days, the trade profile of the BTC has undergone some changes. The Japanese yen's share in the market is about 65%, and the trading volumes continue to decline. The total share of Bitcoin-trades decreased by 27%.