Since the last year, Bitcoin hash rate has been increasing month after month. This is the power used by the Bitcoin network to create new coins and process transactions. In 2017, Bitcoin and its price grew exponentially from $1,000 dollars to $20,000 in December. Since then, the market has been in a downtrend from which it didn’t recover.
Bitcoin Hash Rate Grows Faster than its Price
Because of the exponential growth experienced in 2017, individuals and companies decided to turn to mining activities. And indeed, a huge influx of miners started to add their computing power to the network.
But it seems that the bear market this year did not influence the decision of new miners to enter the crypto world and start mining cryptocurrencies. And even if the price of Bitcoin keeps falling, miners do not go away, but instead, they keep adding computer power to the network.
It is important to mention that this can be a good sign for Bitcoin. Most of the experts in the crypto space believe that the price in the long term will increase.
For example, Thomas Lee, Fundstrat Global co-founder, said that Bitcoin will reach $25,000 dollars. In the next few weeks, the U.S. Securities and Exchange Commission may be allowing a Bitcoin ETF known as VanEck SolidX Bitcoin Trust. If this is confirmed, the price of the famous virtual currency could reach new all-time highs or at least recover part of the market lost during the last months.
At the same time, Lee is basing his prediction on Bitcoin’s historical trading price, which is always 2.5 times its mining cost. At the end of the year, this price could be $9,000 dollars.
Bart Smith, head of digital asset at Susquehanna International Group,commented:
“If you want to own the asset that you can actually use today and that people are functionally using, it’s bitcoin.”
At the same time, Julian Hosp, president, and co-founder of the crypto wallet TenX, explained that Bitcoin could hit $60,000 dollars this year. Whether these predictions are going to happen, this remains to be seen.