Bitcoin Hashrate Hits All Time High! – 237

Bitcoin hash rate Taps new Milestone With minor holding at one year low that Shows that Bitcoin miners Bitcoin BTC Reserves or Bitcoin reserves are at Their lowest since December 2021 despite A dramatic cash rate Renaissance Bitcoin is seeing new records in network Activity as volatility sends bitcoin Price action to Fresh a five-month highs Look at that 23 157 queued in there data From resources including mining pool Stats confirms that bitcoin's hash rate Hit new all-time highs on January 26th Hash rate passes 300 exahash a second Threshold a lot of people were saying That this might not even happen until The next having that and now all of a Sudden we're seeing it happen so this is Pretty cool and another example of Bitcoin's Blitz recovery from the pits Of post FTX woes Network hashing power Is now bigger than ever hash rate which Is an expression of the processing power Dedicated to the network by miners is Currently at 321 exahashes per second According to mining pool stats raw data Despite being only an estimate and Impossible to measure entirely Accurately the latest readings are quite The feat having never crossed the 300X Hash a second level before mining firm Brains likewise confirm the numbers in Its live reporting feed other trackers From btc.com and blockchain.com have

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Slightly lower estimates both being Around 275 exahashes a second on the day The latter shows the hash rate hitting An all-time high of 276.8 extra hash per second on January 20th Quote your wealth is more secure than Ever end quote popular commentator BTC Archive wrote in part of a Twitter Response to the data indicative of Improving sentiment across the Bitcoin Space hash rate is a key component of Bitcoin security and significant Drawdowns result enough Network Difficulty rising to entice more miners To participate Network difficulty is Also set to reach levels never seen Before this week in a nod to Fierce Competition in the mining sector According to data from btc.com the next Automated Readjustment will send Difficulty an estimated 2.75 percent Higher to a 38.62 trillion or 238.62 trillion the previous Readjustment delivered a 10.26 percent Increase and bitcoin's largest since October 2022 and only the second Double-digit hike since mid-2021. now Why is this relevant right because we've Been talking about this over the past You know few weeks really basically what Had happened right and and this is very Important to pay attention to if you are

Trying to understand what's happening in This market and You know I have a lot of people that Will talk to me on the day on a Day-to-day basis uh yesterday I was Talking to a buddy at Jiu Jitsu kind of Sitting on the mats after we finished Rolling and and chatting and there's a There seems to be a lack of Education Surrounding Bitcoin you know he's like Well it's very volatile you see it go Way out to 60 000 and come back down yes Like I told him I'm gonna tell you guys Right now just in case there's anybody That's not familiar with my position on This and where those numbers come from Bitcoin has goes through a having cycle That happens every four years and you Can line up essentially this hopium huge Rises in the increase in price of Bitcoin to somewhere between like six Months to a year after the a having Happens and and the reason why this Happens is because it's all based on the Price to Mint a Bitcoin right so if we Look at the average cost to Mint a Bitcoin we can base that primarily off Of power of course and we can get those Numbers by looking up nodes across Various geographical regions find the Average costs in that region and kind of See which one or how much it costs and Then and then basically extrapolate you Know essentially what the price of

Bitcoin would be based off of that based Off of the cost of energy right and when The having happens the reward is cut in Half so when you have basically the the Having happened every four years the Amount of Bitcoin that's minted per Block which is like a block is basically A a ledger right it's going to have a Certain amount of transactions in it and That gets submitted to the chain and Then miners pick that up and in return For mining that essentially they get a Block reward that block reward gets cut In half so when it gets cut in half it's Naturally going to increase the cost to Mint a Bitcoin which then incentivizes The miners to sell that Bitcoin for more So that they can pay for the cost of Actually minting it the Oddity that Happened here obviously with the miners Is due to a few things though we'll get Into that Established in 2017 octo Miner is an International mining hardware company They manufacture and engineer the best Mining equipment in the industry and Supply rigs to some of the largest Mining farms around the world their GPU Mining rigs also integrate with the top Crypto operating systems like Hive OS Miner stat and simple mining all parts Come with an international one-year Warranty exciting news they will be Adding Asic miners for sale to their

Website soon and launching a new product Built specifically for Asic home miners Please visit octominer.com or email Support octominer.com for questions What happens after that is the price of Bitcoin goes up and a bunch of people See the price of Bitcoin starting to go Up these people are not necessarily Educated on the way that Bitcoin Functions so they're not even aware of The having cycle in fact I would posture That 90 of the people that are even Invested in Bitcoin probably don't fully Understand the effects of the having Cycle on the price of Bitcoin right and This poses quite an interesting problem With Bitcoin as it pertains to Volatility because the thing that you End up here with is a position in which People see price go up and invest Without the understanding of why price Go up and so they keep driving the price Further and further and further and Really past a certain point right which Is the actual cost to Mint a Bitcoin it Is just all speculation so you have a Bunch of speculative money in the market Right right and that drives the price Way way up usually it looks like about Every four years the price goes up about 300 percent over what the previous Cycles all-time high is let me explain What I mean by that so Every four years like I said the cycle

Happened so for let's just take like 2016 2017 cycle and we saw the price of Bitcoin hit twenty one thousand dollars Right Well after it hit twenty one thousand Dollars it came back down to the Previous all-time high and actually a Little bit lower and there's a reason Why it goes a little bit lower we'll Explain that too so in this previous Cycle it goes up about 300 percent over That right it actually went quite a bit Further I was speculating around 63 000 If you guys remember we talked about This way way back in 2020 and I was like I would think that the top would be Around 63 000. and that is because it's Just based off of this the having cycle Nothing more right it's hey what we see Is about a 300 increase to the top and Then it's going to dip back down the Price that it goes back down to Afterwards is the previous all-time Highs usually the previous Cycles All-time high so the previous Cycles All-time high was about 21 000. however we have to take into Account what happens in the energy Industry as well which was a huge Increase in the cost of energy that Happened here recently meaning that we Are close of course to the previous All-time high but because of you know The way that the economy is working and

The way that energy influences and so on We have a higher cost to Mint Bitcoin Now than what would have been initially Anticipated so there is a little bit of Extra influence over that but we can Reasonably assume that you're going to Sit even if we're looking at this four Years ago somewhere around this time Once it comes back off of the hopium and Dump back down between you know 21 000 and 23 000 that being said what we Ended up having of course was a bunch of People that entered into the mining Market that are also not familiar with The having cycle right and we also had a Bunch of lenders into entering the Market that are once again not familiar With the having cycle now the lenders End up being actually in quite a good Position either way maybe and we'll talk About this because this is where things Got weird Basically you had mining equipment that Was selling for way more than it was Actually going to be worth after the Price of Bitcoin took a dive and what This did was put miners in a position Where they had loans that were way too High and it was forcing them to sell Their Bitcoin even below what it cost to Actually mint the Bitcoin because they Had to keep up with paying the loans What has ended up happening of course is That we have miners going bankrupt and

The lenders repoing the miners in a Unique case though that ended up Happening here is that the lenders are Getting back Hardware that is not near Not worth near what they lended the Miners to buy it so it's not like they Can repo it and even get a reasonable Amount return for selling it back to the Used Market which is kind of an issue So what they've begun to do and why You're starting to see not only a rise In the price of Bitcoin to the actual Cost to Mint a Bitcoin but you're also Seeing of course the highest hash rate Network all-time highs right that is Coming from the lenders actually mining With the mining Hardware because it's More beneficial for them to mine with it Than it is for them to sell it at an Incredible loss and that is what brings Us to the position that we are in now Yes it is unique compared to previous Cycles but it still holds true across The having influence right so it's fun To look at the little Nuance but still Make sure that you're paying attention To the actual having cycle itself so you Don't get lead astray by people telling You that the next Bull Run is happening Right now as best as we can tell right Now there is no other Bull Run that's Going to happen at least until 2024 2025 Timeline because we'll have an Approximate having in basically the the

Q4 of 2024 and then we'll have to wait Six months to a year for that to happen Again now there are speculations about Breaking out into like a larger cycle The macro cycle or whatever Um I don't know if that could happen Right as far as where I would sit is I'm Just going to pay attention to you know History rhyming with itself kind of like We saw in the previous Bull Run and I'm Going to sit back and just kind of hang Out as far as that's concerned so that's Kind of what I'm seeing as far as this Is concerned with of course what's Happening here too and it is also Important to note that things are Getting really interesting as well on Some of the stuff that's happening with Bit main because bitmain essentially Gave a few of these miners some credits Or coupons right for basically machines That they had ordered that they never Got delivered presumably right some of This stuff could be like the ka3s which Kept getting delayed and big miners were Ordering in bulk but then ended up of Course going bankrupt and then they get These coupons so core scientific for Example right now is auctioning off like 6.5 million dollars worth of coupons From uh for bitmain units so there is Stuff like that happening too because They gotta you know basically sell Everything they have to compensate for

The bankruptcy and so on and you end up In this fun position This is of course the best time to Capitalize on building at least from my Perspective not Financial advice but for Building up a mining Farm if you wanted To at least it would be the cheapest Time right the bear markets are the Times when you can build out for that Type of stuff However if you go look at of course your Mining profitability most of it is going To be in the red and with Rising energy Costs it's going to be very hard to Predict of course future profitability That being said let's go ahead and Continue this miners get a chance to Balance the books analyzing the climate Uh coin Lupine a contributor at on-chain Data platform crypto Quant warned that Miners are still selling their Bitcoin Reserves and I do tend to agree that This is happening right we saw the big Inflows into binance last week possibly To shore up capital in the event of a Market reversal quote now they have Improved profitability for the first Time in a while and Mining costs are Lower than Bitcoin prices normally more Active Mining and holding could occur But now they seem to see it as an Opportunity to secure cash he wrote in a Blog post describing reserves as Declining at a rapid Pace quote one day

Price adjustment could happen in the Section where they get enough cash and Start collecting Bitcoin again they Constantly reduce their Bitcoin Holdings During the rise crypto quant's minor Position index which measures Bitcoin Outflows to exchanges for minor wallets Relative to their one-year moving Average has captured several withdrawal Spikes since January 4 14th At one point Eight million Bitcoin miners reserves Currently stand at their lowest since December of 2021 which is actually Not as bad of a sign as you would expect It to be it does mean that there's a bit Of recovery on the cash flow for miners Which I think is something to pay Attention to thanks for checking out This clip from the crypto mining show You can check out the full episode here Or more crypto content down here also I'd like you to check out my locals page At son of a tech.locals.com where you Can become a member for free or choose To be a five dollar a month supporter That unlocks additional content

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