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Bitcoin: the hashrate of the blockchain crashes
Bitcoin: the hashrate of the blockchain crashes
Mining

Bitcoin: the hashrate of the blockchain crashes

By Federico Izzi - 15 May 2020

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In the last few hours the figure that immediately appears as an interesting indication, as well as the most followed and awaited, is the crash of the Bitcoin hashrate that, after remaining close to the highest historical levels, falls and drops by about 30%.

Thus, a little more than three days after the long-awaited historic halving, the Bitcoin blockchain network begins to adjust, finding its balance.

The strong collapse of the hashrate indicates that some miners, not efficient enough and with mining machines no longer adequate to the current profits, given the 50% reduction in rewards occurred on Monday night that brought the reward from 12.5 to 6.25 BTC, no longer consider the activity profitable. 

That’s why they shut down the machines or move their business to other cryptocurrencies and blockchains. 

This is leading to an increase in unverified transactions in the last few hours, generating a queue. In fact, the last 100 blocks are recording an increase of more than 45% in the closing time of the block itself, at an average of more than 10 minutes. 

Some blocks are well in excess of 20 minutes, an average that in the last 6 hours halves and falls below 25% while remaining a figure that if continued in the coming days would also impact on the metric of the difficulty of calculating the blockchain.

All this ferment on the mining side is not impacting at all the price of Bitcoin. The variations of the hashrate, in particular the important ones like the one of the last hours, have had an influence on the prices in the past. 

It is enough to remember the significant impact in 2017 when hashrate changes anticipated the price movement in the following hours and days, with a 90% occurrence.

This time there is no impact on prices, at least for now, which in the last few hours have been close to $10,000, a jump of more than 20% from levels where prices fluctuated in the pre and post halving hours

This indicates a strong market force that has positive repercussions on the sector.

 

Federico Izzi
Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".

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