TL;DR
The higher bitcoin mining problem turns into → the extra it prices (in electrical energy) to mine bitcoin.
Usually, many miners will flip their computer systems off and wait until it turns into simpler (and due to this fact, extra worthwhile).
The unusual factor is, proper now mining problem is up, whereas Bitcoin’s value is down…however miners aren’t switching their machines off – in truth, they’re attempting to mine/accumulate as a lot BTC as humanly doable.
This means miners imagine Bitcoin is undervalued, and is because of go up sooner slightly than later.
Full Story
To save lots of this text from getting slightly lengthy within the tooth – for those who’re not already conversant in bitcoin mining problem, this is the way it works.
What you have to know here-and-now, is that this:
The higher bitcoin mining problem turns into → the extra it prices (in electrical energy) to mine bitcoin.
Problem normally goes up as bitcoin’s value rises, as increasingly miners boot up their computer systems in an try and earn extra BTC.
However what occurs when mining problem goes up (making mining dearer) whereas bitcoin’s value drops?
Usually, many miners will flip their computer systems off and wait until it turns into simpler (and due to this fact, extra worthwhile).
The unusual factor is, proper now mining problem is up, whereas Bitcoin’s value is down.
…however miners aren’t switching their machines off – in truth, they’re attempting to mine/accumulate as a lot BTC as humanly doable.
So what does that point out?
These miners imagine Bitcoin is undervalued, and is because of go up sooner slightly than later.
And so they’re placing their electrical energy payments (cash) the place their mouths are.
That is an ideal signal!
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