BTC Hashpower Doubles During Bear Market as Miners Sacrifice Profit for Position

BTC Hashpower Doubles Since May in Bear Market
As indicators go, increases in the BTC difficulty and hashrate are considered pluses, potentially adding robustness and resilience to the network. That miners might be continuing to plod along in a bear market, and in the face of huge price drops and their own profits, could signal better days for all, concerned proponents are concluding. One theory about why this might be occurring comes from crypto exchange Bitmex. They claim powerhouse mining operations such as Bitmain have welcomed market prices bottoming out, as it pushes out weaker hands and helps increase its relative position. “These low prices are likely to be a deliberate strategy by Bitmain,” the exchange explains, “to squeeze out their competition by causing them to experience lower sales and therefore financial difficulties. In our view, herein lies the key to one of the main driving forces behind the decision to IPO. A successful IPO may increase the firepower available to continue this strategy and eliminate an advantage rivals could have by doing their IPOs first.”

Bitmain Reportedly Gaining Market Position
BTC mining difficulty will be lowered, should the amount of hashpower drop. The inverse, of course, is also true: it becomes harder for miners to find blocks when the difficulty rises, which means miners will earn less. On top of that, BTC rewards change about every four years, and thus mining revenue is at the mercy of mining difficulty and its volatility.
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