New data shows that the world of Bitcoin (BTC) miners has not collapsed despite a price drop of over 15% last week.
According to estimates of the Bitcoin hash rate from monitoring the Coin Dance resource, participation is still as high as it was before the fall in prices. The hash rate refers to the amount of computing power used to maintain the Bitcoin network.
Hash rate sees 2nd all-time high
By some standards, the hash rate reached its all-time high on 23 November. With 134 trillion hashes per second, the hash rate on Saturday was almost identical to that of October 10th, as the Coin Dance statistics show.
BTC/USD stood at around 7,200 US dollars on that day, compared with 8,600 US dollars in October.
Entrepreneur Alistair Milne argued that the new data meant that the miners were hardly concerned with the current pricing measures.
“There is NO capitulation from the miners,” he summarized in a tweet on Sunday. He went on to say:
“They are very aware of the imminent halving and do not seem to be impressed by the recent slump.
Difficulty turns upside down
Milne also pointed out the increasing difficulty of mining Bitcoin, an indicator that had fallen until recently.
Difficulty is a measure of the effort required to solve Bitcoin block equations, and regularly adjusts to the Miner’s current mood. Earlier this month, the biggest decline of the year was a 7% drop. Since then an increase of about 2% also contradicts the idea that miners stay away from Blockchain.
For the analyst PlanB, who developed the popular stock-to-flow bit-coin pricing model, the difficulty trends also point to continued confidence in the profitability of mining.
The price model is a “+ 2% difficulty adjustment: no capitulation of the miners,” he wrote on Friday, adding the historical precedent that called for a price increase after such behavior.
According to Crypto This’s real-time difficulty level generator, the next adjustment on December 5 could rise by almost 5%.
Unlike difficulties, the hash rate is difficult to estimate and should not be seen as a definitive indicator of miner involvement.