Bitcoin Miners Feeling FOMO? Blocks Are Being Mined At January 2018 Pace
- Upcoming block reward halving and the surging price is propelling Bitcoin miners to mine blocks as fast as possible
- Bitcoin made profit 98.4% of the time in its entire existence
Bitcoin is a digital currency which is unique in many aspects, whether it is about, as an analyst Willy Woo puts, creating an internet scarcity, the fixed, hard cap limit on a new form of currency or the reduction in supply rate.
Another such feature design of Bitcoin is mining difficulty which is adjusted periodically. This is what’s responsible to ensure that the supply of new BTC releasing in the market remains constant, regardless of its demand in the market.
Currently, we are seeing Bitcoin hash rate hitting all-time highs. Since early June, it has been a regular occurrence, making new highs. Bitcoin mining difficulty in response topped in early June as well.
The mining difficulty, actually, adjusts every two weeks to factor in the new miner hash-power and to further ensure the ten minutes per block standard.
And this supply structure is what contributes to Bitcoin bubbles, as we have already seen three times in the past.
While the supply remains constant or gets further tightened, demand ebbs and flows results in wild swings in the price of Bitcoin.
But exceptions happen as we saw in the bull run of 2013 and 2017. The same one is that we are seeing currently.
On an average, more than 170 blocks have been mined this week while at the pace of one block every ten minutes, it should have been around 144 blocks per day. This marked the highest weekly average blocks miner per day since January 2018.
This urgency to mine blocks faster and faster could be due to the fact that there is less than one year left in the reward halving. This combined with the current spike in price could be what is driving miners’ FOMO.
Bitcoin a Profitable Investment for 3,777 Days out of its 3,837 Days Existence
Bitcoin is not only the best performing asset of 2019 with 251 percent returns till date this year, rather has been for its entire 10-year existence.
This “digital gold” has been almost always a good investment due to the fact that it made a profit 98.4% of the time in its entire existence.
Since first launched on January 3, 2009, to last week, that is July 6, 2019, there have been only 60 such days that a BTC buyer would have been in the red. Majority of these losses have been suffered during the last 2017 and early 2018 bull run. About five of those unprofitable days belong to the past couple of weeks when BTC price become highly volatile.
This, of course, doesn't apply to those who bought BTC at its peak, when the bubble popped. Those investors are still down 35% on their purchase.