After the Crypto Winter, Bitcoin hashrate plunges; what comes next?
Crypto winter continues to spread across all sectors of the industry, especially with Bitcoin. In addition to investors losing their capital due to falling prices, companies are also cutting their workforce. Several other crypto companies have filed for bankruptcy, and many have suspended some services to combat liquidity problems.At one point, many miners find it difficult to pay off their mining debt due to falling prices. According to reports, the collateral value of their mining equipment has declined to the point where they cannot maintain credit. In the midst of these crises, recent reports show that Bitcoin mining hash rates have fallen due to the current fall in price. Coinwarz data show that the hashrate has declined by more than 26% in less than a month. Hashrate simplifies mining and transaction processing in crypto networks like Bitcoin.
A higher hashrate indicates the performance of the network. Many machines provide enough computing power to operate on a network. Such increased performance convinces investors that the network is worth their investment.The difficulty of mining Bitcoin is put in favor of miners, with the difference that its price is slightly set at $ 20,000. For example, this mode made it 3.7% easier to discover a new BTC block. Miners expect another drop of 0.13% after the 1600 BTC block. And expectations are growing that new reforms will take place soon.The revenues will reduce many mining companies as Compass Mining plans to cut 15% of its workforce and reduce the revenues of top executives. Riot Blockchain, Marathon Digital and others have sold their BTC to reduce rising operating costs. Many analysts believe that this sale of Bitcoin assets in the third quarter of 2022 will pressure the price of Bitcoin and affect its price. But the good news for small miners in all these cases is that thanks to a 15% reduction in the price of graphics cards and a decrease in hashrate, they can mine bitcoins.
Read more: Will the $3 billion in Bitcoin released by Mt. Gox lead to a market bottom in August?
