the In the Wake of the bear market, the reports about unavoidable, there are increasing shutdowns of miners. This should, however, votes in no way concerned, reveals a look at the distribution of the Hash Rate: The dominance of the big Mining Pools such as BTC.com and Antpool drops.
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15. January 2019BTC$3.612,24 -1.43% Facebook Twitter LinkedIn xing mail
The Miner, it is currently not easy. Reports of economic difficulties, in particular, of the larger Mining Pools, are piling up. In the Wake of the ongoing bear market, the Pools see themselves faced with falling sales; Coinbase Rewards often have to be immediately liquidated, since the Pools will be able to cover the cost of electricity for the operation of the farms otherwise. In short: Bitcoin Mining is becoming unprofitable.
some of the summons spiral due to the Death Spiral of the death. It establishes the Thesis of the imminent wasting away of the crypto-currency no 1 with a self-potential ends of the negative spiral, in which the Difficulty Adjustment is delayed in time responsive to such a sharp decline in the Hash Rate (the Difficulty adjusts itself every 2016 blocks, roughly every two weeks), that the Miner decide on your business entirely.
The Hash Rate is a dynamic construct and that is a good thing
in fact, it is observed that the accumulated Hash Rate in the Bitcoin network, according to the all-time high in September 2018 (61,9 Terahashes per second) decreases. Currently, the Rate is 43.6 Terahashes per second.
development of the Hash Rate in the Bitcoin network since January of 2018.
at the same time to recognize in the graph, but also vividly, that the Hash Rate in the network is at about 31 TH/S at the beginning of January, 2019 “gebounct”. Since then, the Trend is pointing upward again.
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we all collectively so to breathe? The Bitcoin “death spiral” was just another case of FUD?
Miner, but not on the floor
The short answer is: Yes. Why is the dynamic interplay of On – and-Off of the ASICs is always on the border to profitability – even healthy for BTC, explains to us Diar in its latest edition.
According to the report, the absolute Numbers speak an obscure language. Because although the industry as a whole was able to achieve in 2018, a total turnover of 5.8 billion U.S. dollars, sales of US $ 1.2 billion in January of 2018, a mere 210 million US dollars in December. This corresponds to a drop of 83 percent over the last year. This confirms the General market trend in the Mining industry: growing economic difficulties.
a spiral So it’s the death, one wonders. No. Because, as Diar highlights, opens the Back of the devices, the large Pools of smaller market participants. Instead of a concentration of Hash Power on the Pools of the bear market leads rather to a progressive diversification of the Bitcoin Hash Power.
expressed In Figures, such As Diar writes, like at the beginning of the year to 2018, 53 percent of the Hash Rate on the Bitmain and ViaBTC-run Mining Pools. Since the beginning of this year, the two Pools can combine only 39 percent of the Hash Power – a clear sign for more decentralization of the network.
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distribution of the Bitcoin Hash Rate on the various Mining Pools in percent.
The example of BTC.com this development is particularly visible. During the Mining Pool could unite to the maximum times in April 2018, about 27 percent of the Hash Rate on it at the time, only about 17 percent. This unknown Miner were able to double their share within a year of 2.7 percent to the current 7.7 percent almost. Overall, a decrease is shown at the end of the centralization of Bitcoin mining.
The crypto-currency no 1 seems to be – of course apart from the vagaries of once-a – healthier than ever.
