Bitcoin Hash Rate Sees 10% Decline, BCH Fork Drama Might be Biggest Reason
In a report from The Block, miners seem to be suffering with the latest changes to the Bitcoin hash rate. The media news site has said that this is the “steepest decline in two years.” Though the hash rate managed to reach its highest numbers in October on the 4th, the rate has since dropped by 11.6%.
However, with the recent hard fork of Bitcoin Cash, it is hardly surprising that this happened. The heightened competition and the falling prices are directly correlated with the loss of mining profits. This so-called “hash war” has resulted in many companies switching from Bitcoin. According to reports from ZyCrypto, there are many investors that are trying to save themselves by switching to Ripple.
As the hash rate goes down, Bitcoin’s former $6,369 price tag has gone down to $5,119.74, which is an overall loss of over 20% since then. In the last 24 hours alone, the price has dropped by 8.08%.
With the loss of faith that many investors are having, and with many of them gravitating towards the Ripple platform, some changes need to be made to regain the faith of users.
Ultimately, the writers at The Block do not see this as a major setback. When calculating the rate of growth over the last year, the hash rate has increased by five times over.
However, there still needs to be some solution with these two sides of the Bitcoin Cash blockchains to have stronger resolution for investors. Once the investors come back, there will be a greater need for hashing, which will result in a jump in price.