Situation after the bitcoin plunge
Is the Bitcoin price going to kill the Bitcoin mining industry? Due to the consistent downfall of Bitcoin price, fear is spreading through the people about the end of bitcoin mining. According to F2Pool, the third largest mining pool, bitcoin miners already shut down around 800,000 machines since the mid-November. This is really a massive number. The effect this has had on the Bitcoin networks hash rate has been very real with the network hash rate dropping from 61.8 million terra hashes, the late August to a low of 36.7 million terra hashes quite recently. That sounds really drastic.
There are reports coming out that home miners are being squeezed out even in the regions where the electricity is super cheap. Miners are now looking to sell their old hardware instead of staying in the mining game. Many mining companies are selling the computer gears by the value of kilos. But the fact is that these are the older generation machines that they are selling for basically recycling at this point.
How low a Bitcoin price will go?
Bitcoin has experienced 5 different crashes of over 75% over its history. Although the past cannot indicate the future, however, the fundamentals behind the bitcoin have not changed. Moreover, the Bitcoin has proven its ability to bounce back many times.
There are many people saying that the estimated lows are going down even lower. This seems to be a total panic as the investors are rushing to the exit door taking any price that they can get in order to get out at a loss or perhaps hoping to buy at a lower price later. But bitcoin price does its way of not doing what you expect it to do.
How can the bitcoin value go up again?
We need to have people feel that there is a value in these assets. They must be willing to buy them not because of momentum but because they’re actually valuing on a fundamental utility that could be long term.