Ripple innledet 15 nye kunder midt i SEC-søksmål

Det er ikke lenger nyheter at Ripple er blitt smalt med en søksmål fra Securities and Exchange Commission. Men til tross for de effektene som søksmålet har hatt på Ripple, har konsernsjef Brad Garlinghouse insistert på at det ikke alle har vært dårlige nyheter for selskapet.

Garlinghouse tok til Twitter for å dele brevet som ble lagt ut på nettstedet, der Ripples fart ble forklart. Med tittelen „Ripple Momentum 2020“ bemerket det publiserte brevet de mange Bitcoin Loophole forskjellige milepælene som Ripple har nådd, inkludert pålogging av „15 nye kunder etter SEC-klagen.“

2020 var et bannerår for @Ripple, til tross for en skuffende slutt knyttet til amerikansk regulering (underdrivelse?). Vi behandlet millioner av RippleNet-txns, vokste ODL 12x YoY og signerte 15 nye kunder etter SEC-klagen. 1/3 https://t.co/2efIQDojU7
– Brad Garlinghouse (@bgarlinghouse) 25. januar 2021

Brevet bemerket at til tross for at Ripples native token (XRP) mistet troverdigheten i markedet, da ledende børser og investeringsplattformer fortsatte å fjerne det, noe som ytterligere dempet prisverdien og markedsverdien, har selskapet fortsatt klart å innvarsle “flere kunder enn noensinne før.“

Ripple innledet 15 nye kunder midt i SEC-søksmål

I følge det publiserte stykket, sies det at kundens interesse fortsatt vil øke, ettersom global adopsjon tilsynelatende har sviktet de siste par månedene.

“Kundenes interesse internasjonalt er fortsatt veldig sterk – teamet fortsatte å avslutte nye kundeavtaler med en hastighet på 2 per uke, over mer enn 40 land, hvorav 18 er nye for RippleNet. Til tross for SEC-søksmålet mot Ripple 22. desember, signerte vi 15 nye kunder for å avslutte 2020 med flere kunder enn noen gang før. ”

Prestasjonen ender ikke der, det ser ut til å bli enda bedre for Ripple ettersom on-chain-transaksjonen har økt med mer enn 5 ganger sammenlignet med året før.

“Tallene hadde RippleNet et bannerår. I 2020 behandlet vi nesten 3 millioner transaksjoner over RippleNet – dette er nesten 5 ganger volumvekst sammenlignet med 2019. On-Demand Likviditet fortsetter å vokse og skalere – vi opplevde 12 ganger årlig vekst, og transaksjoner i 2020 hadde en nominell verdi på ~ $ 2,4 milliarder kroner. ”

Ripple ønsket ikke bare nye kunder velkommen i løpet av denne tidsperioden, de hevder å ha diversifisert ansattestrukturen. Ripple sier det er „heldig å kunne fortsette å ansette hvert kvartal i 2020.“ Brevet legger til at; „Vi la toppledere til vårt lederteam med sterk bakgrunn fra Apple, PayPal, Amazon, Tesla og Twitter.“

Etterspørselen etter Ripples tjenester økte også i Asia, mens adopsjonen for RippleNet vokste blant flere bransjer.

„En økende etterspørsel etter digitale finansielle tjenester og interoperabilitet med betalinger i Asia-Stillehavet (APAC) fremmer videre adopsjonen av RippleNet blant regionens mange små og mellomstore bedrifter, fintechs og PSP-er,“ la brevet til. „Antallet tilbud som ble signert i 2020, økte med 80% i forhold til året, og det var en vekst på 1700% i transaksjoner.“

Ripples potensiale i markedet har blitt ekko av ledende bransjeaktører, og dette kommer derfor ikke som noen overraskelse. Imidlertid er fremtiden til Ripple fremdeles ukjent og avventer skjebnen på den innledende forhåndskonferansen som ble arrangert av den sørlige tingretten den 22. februar.

Bitcoin is gaining more and more supporters and recognition, but not across the board. The Bank of America wrote Bitcoin “blows the doors off prior bubbles” and thus strikes against the leading cryptocurrency.

Michael Hartnett, the chief investment strategist at Bank of America, found clear words about the current situation. As a result, a multitude of indicators created a “toxic brew in 2021”. The fact is, about $ 10 billion went into stocks, 29 billion into cash, and 1.5 billion into gold last week, according to the bank’s data. At the same time, Bitcoin’s market capitalization increased by around $ 133 billion, and the good people at Bank of America obviously don’t like that at all.

Even if it is not clear how much money actually went into Bitcoin, it was certainly a lot. GrayScale alone reported at the end of December that around half a billion dollars a week found their way into Bitcoin.

The narrative of Bitcoin as digital gold is paying off

Investors have withdrawn money from gold and invested in Bitcoin, as the digital currency obviously reacts much faster to the mass printing of money. Plus, it is increasingly adopted as a portfolio diversifier even by large companies after numerous studies concluded that Bitcoin increases risk-adjusted returns.

Instead of cash, BTC is now being held as reserves and that the banks and governments do not like this is understandable from their point of view. The blow against Bitcoin is therefore not surprising, but it puts the current development in the wrong light.

Without a doubt, the parabolic rise in the Bitcoin price can quickly be perceived as a bubble. However, the term “bubble” has negative connotations for many when it comes to investing. It implies that something is far beyond its real value and has constructed a house of cards that cannot help but collapse completely at some point. But it is not entirely correct and why I am going to explain to you now.

Why blistering is completely normal

Bitcoin is special in many ways. Above all, however, it is the market launch of the digital currency that sets it apart from what we otherwise know.

Startups such as Facebook or Google once were closed to the public in their early phase by virtue of the Securities Act 1933. That means that at this stage, where there is rapid growth and rapid appreciation, the company is not publicly traded and therefore has no price that we can all track the movement of.

However, it has a private price tag that is only accessible to well-heeled investors and banks. If this price were also shown publicly and constantly updated in real time through public trading, it would quickly become clear that the price developments of such companies also look like a huge, massive bubble. Only when the company has completed its parabolic price increase in this growth phase do early investors realize their immense profits in the form of an Initial Public Offering (IPO) in which they sell their shares to the public. So it was done on Facebook, Google, and every other public company.

So it’s not that Bitcoin is a bubble that eventually bursts and more or less disappears into nothing. Rather, it is the first time we are witnessing real, public pricing of an asset from the very beginning. We are in the phase in which the true value of the underlying valuable asset has yet to be found during its growth phase. It’s no different than with all the startups out there, only that in this case we can follow it without any problems and even have the freedom to get involved.

Bitcoin was publicly tossed on the open market with a starting price of $ 0. The market itself has decided that 1 BTC is currently worth around $ 40,000. Nobody else. The volatility, which shows in parabolic price increases and harsh corrections, only reflects the uncertainty of a free market about where the real value of the digital asset is currently to be applied. After all, that’s not that easy either, because something like Bitcoin has never been there before. So we lack accurate comparison values ​​that we can use. But Bitcoin is not a bubble that bursts and disappears at some point. On the contrary, because it is an unprecedented opportunity for the „little man“ and the „little woman“ to be there from the start and also to benefit from the parabolic growth phase. But clarifying about it is probably not in the interests of Bank of America. But in ours!

Angesichts des Anstiegs der institutionellen Bitcoin-Investoren sagte Catherine Coley, CEO von Binance US, dass Bitcoin vor Ende 2021 weiterhin das Kursziel von 100.000 USD erreichen werde.

Die CEO des US-amerikanischen Binance-Zweigs, Catherine Coley, ist optimistisch, dass Bitcoin bis Ende 2021 weiter auf 100.000 US-Dollar steigen wird

Coley ist optimistisch gegenüber Bitcoin, da das Top-Digital-Asset weiterhin Gewinne erzielt und weitere Höchststände verzeichnet.

Laut dem CEO kann der kontinuierliche Anstieg des Bitcoin Pro Preises mit dem Anstieg institutioneller Anleger verbunden sein. Coley hob den Grund für den BTC-Anstieg hervor, als er am 2. Januar in den KTLA Weekend Morning News sprach . Sie hat hinzugefügt:

„Wo wir vielleicht dachten, dass 50.000 US-Dollar Sinn machen, wird diese Zahl meiner Meinung nach definitiv etwas höher sein. Ich denke, wir werden bis Ende 2021 75.000 bis 100.000 US-Dollar für Bitcoin ausgeben. “

Bisher gab es andere bullische Vorhersagen für BTC

Im Juli 2020 prognostizierte der Kraken-Geschäftsleiter Dan Held, dass Bitcoin 1 Million US-Dollar erreichen würde. In einem kürzlich veröffentlichten YouTube-Video drückte Held die Aufwärtsbewegung von Bitcoin aus und ist zuversichtlich, dass sich der Wert des digitalen Assets verdoppeln wird. Laut Held steht BTC vor einem weiteren Wachstum, da die Königsmünze weltweit mehr Anerkennung findet.

Zum Zeitpunkt der Drucklegung ist Bitcoin in den letzten 24 Stunden um 4,96% gefallen und wird derzeit bei 31.163,01 USD mit einer Marktkapitalisierung von rund 582 Mrd. USD gehandelt.

Last chance to buy? – Key figure predicts further high-flying for Bitcoin

According to Stack Funds, Bitcoin’s MCTC rate indicates a further upward trend for Bitcoin.

Crypto investors „don’t have much time“ before Bitcoin (BTC) continues to rise and even surpass the $20,000 mark, according to a new investment report.

The „Weekly Report“ of the Asian crypto investment fund Stack Funds accordingly pointed out on 10th December that one key figure in particular pointed to a further surge by Bitcoin Code platform in the market-leading crypto currency.

MCTC rate at old strength

According to the report, the so-called „Market Cap To Thermo Cap Ratio“ (MCTC) is currently expected to be similarly strong as in the record run of 2017, when Bitcoin had climbed from under USD 1,000 to USD 10,866.

The MCTC rate considers Bitcoin’s market capitalisation („market cap“) and sets it in relation to the total turnover of Bitcoin Mining since the introduction of the crypto currency („thermal cap“).

This week, the MCTC rate is 17, a value that was also on the table in mid-2017 in the run-up to the record run. Twice in the history of Bitcoin, a subsequent upward trend began after a MCTC level of 17.

„The MCTC rate is currently at 17, which was last seen during the 2019 uptrend. In addition, this value is reminiscent of the record run in 2017, when the MCTC fluctuated around a value of 20, whereupon it went steeply upwards“, as the investment report notes in this context.

From this, Stack concludes that Bitcoin will soon see a significant recovery, which is good news for investors, but may leave interested buyers with little opportunity to invest in the crypto currency.
MCTC rate of Bitcoin. Source: Stack Funds

Accordingly, they write: „As the MCTC rate is currently still at the lower end of its range, we expect that there will still be buying opportunities, but there may not be much time before the $20,000 mark is broken and the window closes“.

What is the next step?

In the last 24 hours, Bitcoin has recovered after an interim period of weakness pushed the previous sideways movement back below $18,000.

At the time of going to press, the Bitcoin exchange rate is hovering around the $18,300 mark, with traders hoping that a new support can be established.

However, as Cointelegraph reported, there is no sign of clear support above $16,200 so far, making the psychologically important $20,000 mark all the more important for further development.

Cointelegraph Markets Analyst Michaël van de Poppe sees the $19,400 mark as a crucial hurdle that needs to be jumped in order to reverse the recent downturn into an upward trend.

„If we want to return to the upward trend and attack the record high, we must first climb above this range,“ the expert said on Thursday.

Bitcoin har stagnert de siste dagene etter å ha toppet seg på $ 19 950 i begynnelsen av desember. Den handler for tiden for $ 18.200, fast i et konsolideringsområde mellom $ 18.000 og $ 19.500.

Noen har begynt å frykte en korreksjon på grunn av tekniske og kjedetrender. Som rapportert av CryptoSlate tidligere har adresser tilknyttet hvaler begynt å øke sine innskudd til børser. Andre analytikere har også bemerket at visse gruvebassenger har begynt å selge av beholdningen.

Men grunnleggende Bitcoin er tilsynelatende sterkere enn noen gang, ettersom verdens regjeringer og sentralbanker fortsetter å velge pengetrykk for å redde den synkende økonomien.

Bitcoin bull case fortsatt sterk blant enestående monetær stimulans

Cameron Winklevoss, medstifter av Gemini, påpekte nylig at Bitcoin bull-saken blir validert ettersom Den europeiske sentralbanken presser på for ytterligere stimulans.

På grunn av en enda en gang forverret pandemi og en langsommere enn håpet vaksineutrulling, tar verdens sentralbanker unnvikende tiltak for å prøve å forhindre pandemien i å påvirke økonomien ytterligere.

Som Winklevoss bemerker, forfølger ECB i seg selv for øyeblikket en økning i sitt „obligasjonsoppkjøpsprogram med tilsvarende 2,2 billioner dollar.“ $ 2,2 billioner er omtrent 10 prosent av EUs samlede BNP fra i fjor.

Videre legger dette til mer enn 1 billion dollar stimulans den allerede implementerte tidligere i år. Dette er langt fra et trekk isolert til EU.

Australia, hvis økonomi var kjent gjennom mange lavkonjunkturer på grunn av internasjonale investeringer, har også flyttet inn i et negativt renteområde fordi det ser ut til å redde økonomien.

I USA rapporteres det om en forestående finanspolitisk stimulusregning på omtrent 1 billion dollar, som kan omfatte en annen utbredt fordeling av sjekker til et flertall av amerikanske familier.

Mange ser på disse trekkene som en validering av Bitcoin bull-saken, da den viser uklarheten til fiat-penger sammenlignet med harde penger, for eksempel BTC.

Wall Street tar varsel

Dette presset for ytterligere monetær stimulans til trillioner dollar har fått Wall Street til å ta varsel. Før dette året var det faktisk veldig få store investorer og banker for banker som var involvert i rommet.

Wall Street-investor Paul Tudor Jones, som kommenterer potensialet for Bitcoin til å overgå midt i tider med massestimulering, sa tidligere i år at han tror Bitcoin kommer til å bli den raskeste hesten i løpet.

Mer nylig sa Stan Druckenmiller at han tror at hvis „gullinnsatsen fungerer“ (refererer til inflasjon), vil Bitcoin „fungere enda bedre.“

Et økende antall Wall Street-investorer mener BTC vil fungere som et bedre spill enn gull, ettersom det fortsatt er en trend med monetær inflasjon.

Bitcoin $ 18 010,93
11. des kl. 1:18 UTC -2,59%

Bitcoin, som for tiden er rangert som nr. 1 etter markedsverdi, har gått ned 2,59% det siste døgnet. BTC har en markedsverdi på $ 334,42B med et døgnvolum på $ 26,29B.

Blockchain aims to make tax evasion more difficult in Thailand.

The Thai tax authority plans to use blockchain technology to streamline tax payments in the next year.

The tax authority wants to use blockchain to improve their way of collecting taxes, rather than increasing taxes. The Thai economy is now gradually recovering

According to a report by the Bangkok Post, General Manager Lavaron Sangsnit stressed that new policies should not affect the country’s economic recovery and that tax hikes could bring the still fragile economy to a standstill.

The government’s goal is to raise $ 17.5 billion in fiscal 2020, 3.3 percent less than in 2019, when $ 18 billion was raised.

In 2021, the tax and customs authorities will also integrate Profit Revolution technology. Sangsnit said blockchain will help these departments calculate tax debts, import duties and prices.

The three departments want to combine blockchain-based surveys in a single database. This is intended to make tax evasion more difficult

Since last year , the tax authority has been implementing blockchain technology to evaluate tax refunds for oil exporters. Oil exporters are required to pay excise taxes. Overpaid taxes can then be reclaimed when they have delivered the oil. The use of DLT technology is intended to make this process faster and more transparent for oil exporters.

Oil export revenues are a crucial part of the Thai government’s budget and amount to about $ 6.6 billion per year. That is around two thirds of all annual income.

Sangsnit said this new system should be fully operational for oil exporters by the first quarter of 2021.

Bitcoin is on its way to $ 22,000, according to one analyst. He also named four factors that keep the momentum going.

Bitcoin ( BTC ) analyst and Lookintobitcoin.com founder Philip Swift cited four reasons BTC was headed for $ 22,000.

The fundamental and technical factors suggest that the top cryptocurrency is gaining momentum

The percentage of HODLers holding Bitcoin for at least a year, the decline in Bitcoin exchange reserves, neutral funding rates, and institutional accumulation point to an ongoing BTC rally. Swift wrote :

„Is the percentage of HODLers who hold Bitcoin for at least a year still really high? Yes. Is Bitcoin being withdrawn from the exchanges? Yes. Is the funding rate still neutral? Yes. Institutions continue to buy? Yes. Cool, then see. Is the funding rate still neutral? Yes. Are institutions still buying? we’re down to $ 22,000 in a couple of weeks when it hits 350 DMA x 2 on the Golden Ration Multiplier. “
Since the beginning of the fourth quarter on October 1, the Bitcoin price on Binance has increased from $ 10,773 to $ 16,730.

HODLer percentage indicates investor confidence

In the Bitcoin sector, long-time BTC owners are referred to as „HODLers“. The one-year HODL wave shows that the number of investors holding BTC for over a year has increased.

Since the slump in March, the one-year HODL wave has risen from 59 percent to over 62 percent. It is now at an all-time high, which indicates a clear trend towards accumulation.

As the number of HODLers increases, it suggests that people want to buy Bitcoin and keep it for a long time. The ongoing trend could be an indication that investors expect an extended Bitcoin rally over the longer term.

Dyrektor generalny Ryanair Micheal O’Leary wzywa Bitcoin’a, nazywa to programem Ponzi.

Zwiększona uwaga inwestorów instytucjonalnych stała się w tym roku wymiennikiem gry dla Bitcoinów. Niektórzy analitycy uważają nawet, że większy napływ tych inwestorów może napędzić aktywa do 1000 procent zysku w nadchodzących latach.

The Big Bucks Keep Coming In

Na początku tego miesiąca analitycy z czołowego banku inwestycyjnego JPMorgan opublikowali raport sugerujący, że Bitcoin jest przygotowany na rekordowe zyski w przyszłości, jeśli utrzyma się akceptacja ze strony inwestorów instytucjonalnych. Jeśli tak się stanie, składnik aktywów może w końcu raz na zawsze pobić złoto.

Dokument JPMorgan rozpoczął się od potwierdzenia wzrostu Bitcoin w ciągu ostatniego miesiąca – okres, w którym składnik aktywów przeniósł się z połowy 11.000 dolarów do ponad 15.000 dolarów, za dane z CoinMarketCap. Analitycy słusznie przypisali dużą część tego rajdu do najwyższego procesora płatności PayPal, który ogłosił w połowie października, że od 2021 r. będzie świadczył usługi transakcji w kryptowalutach.

PayPal poinformował o swojej nadchodzącej ofercie kryptograficznej już od trzech tygodni, a analitycy JPMorgan wyjaśnili w swoim raporcie, że powinno to zwrócić większą uwagę na najlepszą kryptokurrency.

Koncentrując się na instytucjach, JPMorgan zwrócił uwagę na nowojorskiego giganta w dziedzinie zarządzania aktywami, firmę Grayscale Investments, której fundusz Bitcoin Investment Fund osiągnął ponad 4 mld USD aktywów w zarządzaniu. JPMorgan uważa, że rozwój tej firmy wskazuje na rosnące zapotrzebowanie ze strony inwestorów instytucjonalnych, a nie tylko indywidualnych nabywców.

„Ci inwestorzy instytucjonalni wydają się być największymi inwestorami w Grayscale Bitcoin Trust, być może odzwierciedla to ich preferencje dotyczące inwestowania w Bitcoin w formie funduszu“, podkreślił raport.

Analitycy wskazali również na podobieństwa między utrzymującym się boomem Bitcoinu a tym, co wydaje się być glutem na rynkach złota. Podczas gdy Bitcoin gwałtownie się rozwijał, fundusze giełdowe oparte na złocie (ETF) odnotowały w październiku niewielkie odpływy. Jak uważają analitycy JPMorgan, świadczy to o możliwym odpływie inwestorów ze złota do Bitcoinu.

Obecnie prognozuje się, że utrzymanie status quo mogłoby doprowadzić do znacznego wzrostu cen Bitcoinów. Moglibyśmy dojść do punktu, w którym kapitalizacja rynkowa Bitcoin kruszy złoto, umacniając pozycję najlepszej kryptoj waluty jako najcenniejszego aktywa alternatywnego na świecie.
Bitcoin jest zamkiem na długi czas.

To dopiero drugi optymistyczny raport JPMorgan na temat Bitcoinu w ciągu ostatnich kilku tygodni. Pod koniec października w nowojorskim banku inwestycyjnym Global Markets Strategy opublikował raport, w którym podkreślił, że aktywa te mają znaczny potencjał długoterminowy.

Podobnie jak zeszłotygodniowy raport, również ten ukazał się po ogłoszeniu PayPal. Bank wyjaśnił w nim, że Bitcoin ma przed sobą świetlaną przyszłość, tym bardziej, że Millennials są przygotowane do przejęcia bardziej znaczącego udziału w rynku inwestorów.

Bank podkreślił również, że Bitcoin wykazał swoją użyteczność. Amongst other things, this means that the asset is much more than just a fad. Podczas gdy złoto pozostaje około dziesięć razy bardziej wartościowe niż Bitcoin (biorąc pod uwagę kapitalizację rynkową), nieuniknione jest zwiększenie znaczenia tego ostatniego.

Dzięki większemu wykorzystaniu Bitcoinów i technologii łańcuchów blokowych, a także większej akceptacji (zwłaszcza ze strony inwestorów instytucjonalnych), Bitcoin jest przygotowany do przełomu w nadchodzących latach.

Cet indicateur crucial suggère que le bitcoin est sur le point d’atteindre un sommet

• Bitcoin a connu une forte hausse de 25 % au cours des deux dernières semaines.
• La pièce se négocie actuellement à 13 700 dollars.
• Les analystes pensent que la cryptocouronne pourrait subir un retracement à court terme.
• Cole Garner a récemment partagé le graphique ci-dessous.
• Il montre que Bitcoin fait maintenant clignoter des signaux techniques vus pour la dernière fois avant le plus haut du mois d’août.
• Le signal qui semble sur le point de se former a également été repéré aux plus hauts de février, avant la brutale rupture de mars.

Bitcoin devrait bientôt atteindre un sommet : Indicateur

Selon un important indicateur technique de Bitcoin, le pic de ce rallye devrait bientôt être atteint. Cole Garner, un analyste de crypto-actifs a Bitcoin Up, a partagé le graphique ci-dessous, qui montre l’évolution du prix de Bitcoin au cours des trois dernières années, ainsi qu’un indicateur personnalisé.

Avant les multiples sommets à moyen terme du rallye de 2019 et la hausse exponentielle de 2017, cet indicateur a lancé un avertissement. Ce même avertissement commence à clignoter maintenant. L’indicateur suggère que Bitcoin pourrait bientôt atteindre un pic à moyen terme/local, auquel cas un repli ou une période de consolidation aura lieu.

Il est à noter que le dernier signal de tête local n’a pas encore été repéré. Mais compte tenu des précédents historiques, il pourrait apparaître dans les semaines ou même les jours à venir.

Les analystes de JP Morgan pensent également que Bitcoin est proche d’un pic à court terme.

Les analystes de la banque ont publié un rapport sur les cryptocurrences il y a deux semaines. Le rapport a indiqué que selon le marché à terme du CME, Bitcoin pourrait être surendetté à la hausse à court terme.

JP Morgan a cité un index/indicateur de positionnement, qui suggère que certains investisseurs sont les plus haussiers qu’ils aient été cette année. L’indice a atteint des sommets supérieurs à ceux observés pendant l’été, à savoir ceux observés juste avant la baisse de 25 % de fin août et début septembre.

Attendez-vous à des sommets inégalés cette année

Bien que Bitcoin puisse être confronté à une réduction ou à une consolidation à court terme, les analystes sont convaincus qu’un nouveau record est imminent. Tyler Winklevoss a récemment déclaré

„Je pense que nous verrons un prix record pour le #Bitcoin avant la fin de 2020. Même si le prix est passé de 10 000 à près de 14 000 en moins d’un mois, il n’a pas encore vraiment fait son temps. Quand nous commencerons à voir des hausses de 3 à 5 000, les taureaux seront en fuite“.

Mining is very common, especially in China. Mining is mostly done with GPU (graphics cards) or specialized devices (ASIC). The picture shows a GPU mining farm.

The Bitcoin hashrate fell by more than 35% within a few days. According to Core Scientific, this slump was due to the end of the rainy season in Sichuan, China.

Bitcoin hashrate slump due to the end of the rainy season

In China, Bitcoin Superstar is operated in areas with cheap hydropower. During the rainy season, from June to October, the dams are full and there is a healthy supply of electricity. During this time, the Bitcoin miners are working at full speed and can fall back on cheaper electricity prices.

However, when the rain in the region subsides, bitcoin mining will become far less profitable as prices triple or quadruple, according to Tarak Kulyk, senior vice president of blockchain business development at Core Scientific. Kulyk said in an interview:

The weather is a major profit driver for many Chinese miners as they can buy old equipment cheaply but can only be profitable for five months a year.

Bitcoin’s hashrate is a measure of the collective computing power of BTC miners. Ingo Fiedler, co-founder of the Blockchain Research Lab, said the following:

Since Bitcoin mining is energy-intensive, miners look for where the energy is cheapest. As soon as energy prices change, for example because of the rainy season in China, the miners move.

In other words, when BTC miners move, they are offline and therefore unable to contribute to the Bitcoin hashrate.

Moving to North America?

In other countries where Bitcoin is mined, environmental factors do not necessarily play such a big role compared to China.

As a result of this relative instability, some Chinese miners are eager to relocate their operations. „Core Scientific is working with several Chinese players to move part of their fleet to North America as our performance is stable and does not change significantly over the course of the year,“ said Kulyk.

In the United States, Bitcoin miners also benefit from more stable regulatory policies, according to Kulyk.

Regulatory policies are far more stable in North America and can accelerate the digital asset space as changing attitudes about digital asset mining and the sector are a national security priority.

Over the course of 2020, China’s dominance in Bitcoin mining has waned somewhat, although it still controls a sizable chunk of Bitcoin’s hashrate. The local mining industry has been partially restricted by the authorities. Access to subsidized electricity was blocked in some regions after a report found that Bitcoin mining „has nothing to do with the real economy“.

Bitcoin Difficulty Adjustment will help

So there is currently no need to worry about the security of Bitcoin. The hashrate is still extremely high and secures the network sufficiently. However, it must currently be expected that Bitcoin blocks will now be found more slowly because the difficulty has not yet adjusted. This can currently lead to higher transaction fees and longer waiting times.

As soon as the difficulty has adjusted, this will also motivate other miners to get into Bitcoin mining. The game theory behind Bitcoin still works excellently. In addition, the hashrate should normalize again after the miners have moved.