Bitcoin’s value has been plummeting since the start of 2018, with the asset now trading at under $7,000. Even though prices are falling, it does not seem to have a negative impact on the Bitcoin hashrate, which is rather increasing despite Bitcoin trading below what is considered the profit margin.
Bitcoin Value Continues To Tumble, From Nearly $20,000 To $6,000
Just over eight months ago, in December 2017, Bitcoin quickly established a new all-time high, at over $19,000 per coin. Two days after this surge, the price of the coin dropped by 20%, trading at $15,198 per coin, according to one report. Since then, the coin has continued to fall in value following 20% ‘cliff dive’ and has yet to recover to this day.
Since the beginning of this year, Bitcoin has been traded at a significantly lower price than it did in December 2017. For the majority of the year, the price has been bouncing between the $6,000 and $9,000 price range.
At the time of writing, Bitcoin is trading at $6,530 per coin, a 3.43% increase in value in the last 24 hours. The low for the day was $6,293, with a high of $6,541.
The Bitcoin Network’s Hashrate Nearly Quintuples In 8 Months
With the price of the Bitcoin cryptocurrency trading at these low prices, it is only natural to think that the Bitcoin hashrate follow the decline. According to a recent report by Bloomberg, however, the opposite seems to be true.
Bloomberg reports that, despite the fall in value, the Bitcoin hashrate has been increasing quite rapidly. The hashrate of Bitcoin has already reached 50 million TH/s this week and is still continuing to grow.
The Bitcoin hashrate refers to the amount of computational power that is currently being allocated to the mining of Bitcoin blocks. At the beginning of 2018, the Bitcoin hashrate was just over 10 million TH/s, which means a growth statistic of almost 500% was observed within the last eight months.
According to Bloomberg, the increase in hashrate for this network means that, even though the coin is now trading at a significantly low value, miners still see potential in the future prospects of Bitcoin.
Genesis Mining’s Chief Executive Officer, Marco Streng, said in an interview that several expansions in the Bitcoin mining industry are currently in development. He continued to explain that the coin still holds value for the “more efficient Bitcoin miners out there.” However, the company has recently decided to drop smaller mining contracts to focus on larger contracts, which will, in turn, help the firm save on its operating margin.
Bitcoin’s Declining Price Might Be A Temporary Occurrence, As A Bull Run Has Been Predicted
Even though the current price of Bitcoin is considered to be at a low, experts in this nascent industry are still optimistic. Several reports over the last month have predicted the upcoming arrival of a possible bull run, similar to the run-up that was observed at the end of 2017.
The fact that many long-term miners are holding on to their mining hardware and their Bitcoin, combined with the rising trend of Bitcoin’s hashrate, is solid proof that this asset will not fall off the face of the Earth.
Earlier reports from experts in Bitcoin and cryptocurrency investment said that the current decline in value is only temporary. By the end of this year, some experts believe that we may even see the value of this coin rise to as much as $25,000.
While Bitcoin is trading at under $7,000 and the price seems to be falling, miners are gaining confidence as we have seen the hashrate of this cryptocurrency increase significantly over the past few months. Experts are also holding hope as a bull run is expected to occur closer to the end of 2018.