• Wed. Nov 20th, 2024

Reduction in Value, Market Cap & Hashpower, Creating More Difficulties for Bitcoin, Its Supporters & Miners

Avatar

By

Jan 9, 2022

The days have long forgotten when Bitcoin and Ethereum prices went below the levels of US$ 30K and US$ 3K respectively. After hitting their all-time highs both assets saw their values reduced by more than 50% in July 2021. As a result, Bitcoin’s value became US$ 30,000 while Ethereum’s value was reduced by US$ 1,500.

The supporters of Bitcoin and Ethereum have once again been reminded of the time recently which existed in July 2021. Bitcoin was forced to move downwards into the 30K zone. Similarly, Ethereum too was forced to see its value going down below US$ 3,000. For Bitcoin, it took more than 120 days to witness 30K zone, however, Ethereum took almost 90% days for witnessing below US$ 3K level.

It is once again proven for the investors that the time is not right for investment. They can’t make any handsome profits in the existing circumstances. On the contrary, they have been selling a few of their Bitcoins and Ethereum because they have lost hopes of making any profits.

Experts and analysts too have started to suggest that the Bitcoin market is currently ‘bearish’. So the chances of any prominent gains look impossible in the meantime.

Meanwhile, the political situation has worsened in Kazakhstan, which is the world’s second-biggest Bitcoin mining facilitator. At presently, the whole country’s internet supply has been cordoned off. Not even residents nor miners can access the internet in Kazakhstan. The lack of internet has severely damaged the Bitcoin mining process whose hashpower has been reduced enormously. Globally, Kazakhstan is supporting at least 18% of the entire Bitcoin hashpower. However, the power has been reduced by 14% approximately.

So from the two ends apparently, Bitcoin has been failing in putting up some appreciating results. Reduced hashpower is also acting contrary to the interests of Bitcoin and has further damaged Bitcoin market conditions. Now the pressure has been shifted onto the miners as well.

If one looks at the past 10 days’ hashpower of Bitcoin, the data shows that the hashpower too has been gradually shrinking. In 10 days, for example, Bitcoin’s hashpower has been reduced by a total of 15% wherein the majority of the reduction stemmed from Kazakhstan.

Avatar

Leave a Reply

Your email address will not be published. Required fields are marked *