Bitcoin Mining Profitability Jumps Back to Positive After 2nd Largest Difficulty Drop

While The Digital Currency Having An Existential Crisis.

After falling to its lowest level in mid-March to 0.069, Bitcoin mining profitability is back above 0.1. The mining profitability turned positive this week after the mining difficulty had its second-largest drop in history.

Source: @TradeBlock

The hash rate of the network has jumped above 100 Th/s after having its biggest drop of 45% drop in March. This jump in profitability is yet another sign of a shift in the market.

Also, daily bitcoin volume though lower than a month ago, dropping by about 100,000 transactions per day, is high compared to historical averages at above $1 billion.

One possible reason behind this drop could also be Coinbase that has started to batch its transactions to reduce the load on the network.

But as analyst Mati Greenspan said, given that Visa is reporting its spending levels to be way down this month after a drastic reduction in internet money usage due to the current lockdowns, Bitcoin could also be expected to see some negative effects.

Bitcoin having an “Existential Crisis”

Just like the bitcoin network, the price of Bitcoin has turned green, trading under $6,700 up 7% in the past 24 hours.

Source: Coin360

These gains came after bitcoin and altcoins took a back seat throughout the course of the coronavirus crisis, but they have started to gain their volatility edge back.

Although bitcoin continues to have a high correlation with the stock market, this Greenspan said is good for the cryptocurrency’s “individualism.” Greenspan wrote in his daily newsletter,

“There seems to be an existential question going around the crypto market at the moment where people are saying that if bitcoin can't rise in this environment then it probably doesn't have much of a reason to exist at all. After all, the narrative of using bitcoin as a safe haven in times of financial stress has been a rather strong one throughout the years and so now should really be BTC's time to shine.”

However, he points out how this never has been part of the flagship cryptocurrency’s white paper. Bitcoin has been invented as an alternative to money.

The ongoing volatility has been because the crypto asset is new and its adoption rate is unstable which leads to “large levels of speculation.” For Greenspan, the measure of its success won’t be Bitcoin going straight to the moon due to global uncertainty but staying on a slow and steady incline.

During the current trying times, Bitcoin’s “great success” is in the fact that it didn’t have any fundamental changes and the network is working as intended.

Gold meanwhile is doing as it always does, with no rush to go anywhere. The precious metal recorded only slight losses since the crisis began and has been an excellent store of value. Greenspan said,

“It would be nice to see bitcoin doing the same but also understandable that a lot of the weak hands have left the market in these turbulent times.”

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,478FansLike
2,795FollowersFollow
4,196FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

DeFi Frenzy Drives Combined Market Cap of ERC-20 Tokens to Surpass ETH

The overall valuation of tokens built on top of Ethereum blockchain, especially the most popular ERC-20 tokens, has surpassed the value of ETH itself. The...

Chainlink Is Back On The Move, Is it Time to Sell LINK?

The 10th largest cryptocurrency by market cap of $2.58 billion has been enjoying gains for well over a year now. Chainlink has been performing...

US Army Investigative Unit Calls For A ‘Ready' Web-Based Crypto Tracking Application

The U.S Army is looking for a web-based application to help investigate cryptocurrency transactions and transfers, helping in cybercrime investigations. The Investigative Unit of...

Zcash Counts Down to Major Upgrade to increase Privacy and Efficiency

In less than two days, Zcash will have its fourth major network upgrade called Heartwood. This upgrade will be activated at block 903000, which...

Polkadot Holders Votes Could Scale DOT Token Supply by 1000x; A 100x Increase Leads the Polls

The Polkadot community can now vote on a redenomination proposal for its platform’s native token, DOT, which is set to see its supply increase....

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today