Hashrate Rises for Bitcoin Network, Showing That Investors Are “Here for the Long-Term”
With the 70% decline that the cryptocurrency industry has seen, most people would expect the whole of the industry to suffer as well. It would be only natural for the followers of crypto to abandon the industry now, but it looks like the loyalists are sticking around. The computing power that maintains the security and strength of the Bitcoin blockchain, which is known as the hashrate, is actually rising. This difference from the market capital is indicative of how happy investors are with the long-term potential of Bitcoin, according to David Sapper.
Sapper, the Chief Operating Officer of Blockbid in Australia, told an interviewer with Bloomberg,
“The increased hash rate means people are here for the long-term because they’re happy to just accumulate what they have, potentially even run at a loss. At the same time, they do sometimes have to clear house and dump.”
Still, there is still the question of why this is happening at all, apart from investor commitment when values are plummeting. Bitcoin has reached highs of $20,000, and a dip of nearly 75% in any stock would most likely throw off the people who formerly supported it. In fact, investors in the crypto market thought that the mining and the hashrate of Bitcoin would follow suit. Sappy insists that this rise has to do with the fact that cryptocurrency already has nearly a decade under its belt and believes that recovery is not far behind at all.
CEO Marco Streng of Genesis Mining does not agree with Sapper’s assumption. He believes that the miners with greater productivity and efficiency have established enough power and sophistication in their equipment to make up for the miners that cannot keep up with the slump. As Streng puts it:
“There are still major expansions happening, especially from more efficient miners. The expansion is so big that it compensated for the drop-out of not-so-efficient miners.”
It is clear that both Streng and Sapper are part of the collective that is hopeful for Bitcoin’s future. Whether it is due to the growth of Bitcoin mining or the expectations of investors, seeing the hashrate rise for Bitcoin is a promising indicator of cryptocurrency’s future.