Bitcoin miners’ resilience to geopolitics — A healthy sign for the network
The phenomenal recovery of the mining hash rate for BTC goes to show how resilient the network and its community are to world events. Considering that Bitcoin (BTC) is a blockchain network that uses a proof-of-work (PoW) consensus mechanism, miners are a highly significant part of the market dynamics of the network and the community itself. On Jan. 5, it was revealed that Kazakhstan shut down its internet services due to unprecedented political unrest sparked by rising fuel prices in the country.The protests in Kazakhstan began on Jan. 2 in the town of Zhanaozen to fight against the....
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According to the chairman, the central bank will decide on implementing its own digital currency by the end of 2022. While Kazakhstan’s government is catching up with the tremendous volume of crypto mining in the country by introducing new taxes and regulations, the local central bank intends to explore the possibilities that crypto offers. On Tuesday, June 7 during the press conference the chairman of Kazakhstan’s National Bank Galymzhan Pirmatov stated that the nation aims to extract the profit from technologies the cryptocurrency market could provide. He emphasized the attractiveness of....
Record trading volumes have accompanied bitcoin's rally this year, and subsequent swoon, offering a healthy sign of just how much price discovery is taking place in rapidly growing (to $3T?) cryptocurrency markets.
Bitcoin’s network momentum, a metric that tracks on-chain volume, has stalled in recent months. Some see this trend as a concerning sign for BTC’s long-term trend. This may not be a concern as there are certain trends suppressing the metric, analyst Willy Woo says. Bitcoin Momentum Stalls But It’s Not the End of the World Despite resilience in Bitcoin’s price, exemplified by the recent price action and the macro rally from the March lows, network […]
Research suggests that Bitcoin miners are holding less of the asset. A new report by on-chain analytics provider CoinMetrics suggests that miners’ considerable influence on the Bitcoin network is slowly diminishing.The research analyzed miner and pool addresses and spending in order to determine whether their influence over the network as a whole had changed over time. As miners receive newly issued Bitcoin rather than buy it, they are natural net sellers of the asset.Measuring the net flows from two types of addresses associated with block rewards revealed that there has been a gradual....
Since July 2022, the Bitcoin ecosystem recovered across numerous determinants, including miners’ revenue in dollars, network difficulty and hash rate. The Bitcoin (BTC) mining industry endured immense financial stress throughout the year 2022 as a prolonged bear market directly impacted their earnings when translated to the U.S. dollar. However, miners resilient to the year’s lowest mining revenue day, June 13, witnessed a 68.63% increase in mining revenue within a month.Over the year, revenue from Bitcoin mining dropped due to a multitude of factors centered around investor sentiment —....