This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. PHEMEX is also celebrating their two year anniversary by sharing 2 BTC with 10 lucky winners to help them realize their dreams: https://anniversary.phemex.com/#dream-sectionAfter a year filled with volatility and FUD, Bitcoin’s hash rate has reached an all-time high. The hash rate is the computational power per second used when mining Bitcoin. It’s important because it is one of our most accurate and raw measures of interest, faith and strength. About 6 months ago, the hash rate dropped to 58.5m TH/s. Now we have crossed the 200m TH/s threshold - an encouraging start to 2022.The drop was a direct result of China’s mining ban. Bitcoin bears loved it. Doubters speculated that the hash rate would never return and that the network would die. For the remainder of the year, we were endlessly reminded that the hash rate dropped 67% in a two-month span, representing the largest drop in total hash rate in Bitcoin’s history. At the same time, Bitcoin’s price dropped below $30,000, over 50% from the highs. It felt like the end to many people.It wasn’t.China’s ban created a positive geographical shift in the network's hash power. This is not up for debate - the hash rate has returned and then some, and the network is now more robust than ever before.There is one theory has yet to be cleared up, and will likely come back around the next time we see a major move in hash rate.Does price follow hash rate or does hash rate follow price?This question has been debated ad nauseam. with neither side offering a convincing argument. Perhaps when there were fewer miners and the price was much lower these two variables held stronger influence over one another, but this doesn’t seem as likely today. In a more mature and efficient market, conclusions are difficult to draw, no matter how deeply I dig into the metrics and arguments.Also worth pointing out is the fact that the hash rate has steadily risen since Bitcoin’s inception. Outside of a few major bumps in the road, it’s actually incredibly predictable, unlike price. If the hash rate had more long-term variance there may be more room to speculate. If you want a visual, I suggest you check out this chart HERE.I think the best way to understand the two metrics is to be aware that the hash rate is growing and to maintain cautious optimism that price will continue to appreciate in the long run.The growing hash rate continues to prove that the Bitcoin network is in good health and has remained resilient through history.In This Issue:Hash Rate Has ReturnedBitcoin Thoughts And AnalysisAltcoin ChartsPredictions for 2022Vitalik Butterin Talks Success And FailureBitcoin Is The New GoldBitcoin Turns 13My Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #405 - Hash Rate Has Returned
The Wolf Den #405 - Hash Rate Has Returned
The Wolf Den #405 - Hash Rate Has Returned
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. PHEMEX is also celebrating their two year anniversary by sharing 2 BTC with 10 lucky winners to help them realize their dreams: https://anniversary.phemex.com/#dream-sectionAfter a year filled with volatility and FUD, Bitcoin’s hash rate has reached an all-time high. The hash rate is the computational power per second used when mining Bitcoin. It’s important because it is one of our most accurate and raw measures of interest, faith and strength. About 6 months ago, the hash rate dropped to 58.5m TH/s. Now we have crossed the 200m TH/s threshold - an encouraging start to 2022.The drop was a direct result of China’s mining ban. Bitcoin bears loved it. Doubters speculated that the hash rate would never return and that the network would die. For the remainder of the year, we were endlessly reminded that the hash rate dropped 67% in a two-month span, representing the largest drop in total hash rate in Bitcoin’s history. At the same time, Bitcoin’s price dropped below $30,000, over 50% from the highs. It felt like the end to many people.It wasn’t.China’s ban created a positive geographical shift in the network's hash power. This is not up for debate - the hash rate has returned and then some, and the network is now more robust than ever before.There is one theory has yet to be cleared up, and will likely come back around the next time we see a major move in hash rate.Does price follow hash rate or does hash rate follow price?This question has been debated ad nauseam. with neither side offering a convincing argument. Perhaps when there were fewer miners and the price was much lower these two variables held stronger influence over one another, but this doesn’t seem as likely today. In a more mature and efficient market, conclusions are difficult to draw, no matter how deeply I dig into the metrics and arguments.Also worth pointing out is the fact that the hash rate has steadily risen since Bitcoin’s inception. Outside of a few major bumps in the road, it’s actually incredibly predictable, unlike price. If the hash rate had more long-term variance there may be more room to speculate. If you want a visual, I suggest you check out this chart HERE.I think the best way to understand the two metrics is to be aware that the hash rate is growing and to maintain cautious optimism that price will continue to appreciate in the long run.The growing hash rate continues to prove that the Bitcoin network is in good health and has remained resilient through history.In This Issue:Hash Rate Has ReturnedBitcoin Thoughts And AnalysisAltcoin ChartsPredictions for 2022Vitalik Butterin Talks Success And FailureBitcoin Is The New GoldBitcoin Turns 13My Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO