The computing power of the entire network fell after the halving and institutions continued to enter the market
The difficulty of Computing Power decreases gradually, the effect of halving appears
According to BTC.com data, BTC was first adjusted for difficulty after the halving of block height 631008 at 10:06 on May 20, Beijing time. The difficulty of the whole network decreased by 6.00% to 15.14T compared with before the halving. It is expected that the next difficulty adjustment will be on June 5, and the difficulty will drop by about 12% again.
RRMine Computing Power Observer pointed out that the most direct reason for the decline in computing power difficulty is BTC halving, but due to the decline in token price on March 12, the effect of having was not directly displayed at the time. But now it is time for flood season period and miners are also waiting for this period and looking forward to restarting the mining machine represented by S9 for a period of time for mining.
There is a lag in computing power. The increase in computing power leads to increased difficulty, which causes the miners to shut down temporarily. If more miners shut down, the computing power of the entire network will decrease, and the difficulty will become lower. At this time, the miners who shut down will be reopened because the cost of shutting down is reduced, so the miners can obtain objective profits. At this time, new miners will be attracted to the market and the computing power will rise again.
Statistics show that the highest decline in BTC computing power within a month after halving in 2012 was -38.67%, the highest decline in 2016 was -21.33%, and the current decline as of 2020 is -17.64%. Every time of Bitcoin’s halving, it will eliminate a group of miners and every time of computing power declines, it is a good time to hoard computing power.
After the third time of halving, the mining cost becomes higher, but the mining industry is facing a major reshuffle. As the competition becomes more intense, all links in the mining industry become more and more transparent, whether it is a mine or a mining machine, and cloud computing power platforms, such as RRMine, BitDeer, BTNEX , etc., will all develop towards compliance and refined operations. Therefore, it is a good opportunity for mining now.
With the continuous increase of BTC followers, hoarding computing power is the optimal choice for investors now.
According to data from the encrypted data company The Tie, the currency price fluctuated sharply before and after the halving threshold and halving, and the currency circle sentiment obviously returned to a stable state. The smooth transition of the halving also made the market become more confident in BTC, and the mainstream media increased publicity for BTC, in a period of extreme economic uncertainty, digital gold has once again become the dominant public opinion of cryptocurrencies.
At present, the number of addresses of 1 BTC and 0.1 BTC both reached a record high this year, which is a good signal and indicate that the BTC base population continues to expand, and the increase of transaction fees also means the increase of trading activity, which is in response to the increase of base population.
“Since the birth of BTC, investors have been making profits in 98% of the time, and with the global epidemic still spreading, the central Banks slowing down research into cryptocurrencies, the well-performing BTC will be an important asset.” According to Steve Tsou, the GLOBAL CEO of RRMine, BTC market’s power is gradually revealed due to various factors, which will eventually lead to qualitative changes. Faced with the high volatility of the market and the high growth in the future, mining and hoarding is the most ideal choice for ordinary investors.
Big companies entered which made the status of BTC improving continuously.
Since 2020, Grayscale has continuously increased its holdings of cryptocurrencies. Reddit users released an independent research report and pointed out that the number of Bitcoins held by Grayscale increased from 283,192 on February 7 to 343,594 on May 17. In addition, since the halving, the Gray Trust’s Bitcoin Trust (GBTC) has increased its holdings of 18,910 Bitcoins, which is 150% of the total number of Bitcoins mined by miners during the same period.
On June 3, according to the official data released by Grayscale, Grayscale’s Bitcoin Trust (GBTC) increased its holding of Bitcoin worth $151.3 million in one day. If calculated according to the average price before and after the plunge (refer to Coinbase data), Grayscale bought about 15540 Bitcoins a day, and up to 16316 bitcoins.
Grayscale Investment is one of the famous Bitcoin giant company. Before and after the halving, Grayscale Investment bought 38392 Bitcoins in the past month, an average of 1280 per day. Based on the daily production of 1,800 Bitcoins before the halving, Grayscale Investment alone bought 71% of the Bitcoin production.
In April of this year, Bloomberg News reported in the “Bitcoin Maturation Leap” and pointed out that under the continuous spread of the epidemic, the global economy and financial system have been hit by the greatest demand and supply since the 2008 financial crisis. The central banks from all over the world have launched “an unprecedented monetary stimulus policy”, and these stimulus measures will make Bitcoin and gold hit a record high correlation.
The RRMine computing power observer believes that judging from the continuous entry signal of the giant whale represented by Grayscale, this is obviously not only a direct benefit to the long-term value of BTC, but also a good position for the future crypto assets in the global capital market. RRMine is optimistic about the market behind the basic energy computing power assets in the digital world, and will continue to advance the pace of global expansion under the computing power of crypto assets represented by BTC and seize new opportunities.
