The cryptocurrency market has seen a more than 70% drop in valuation since its December 2017 peak. Although led by a massive correction in the Bitcoin (BTC) price, the downtrend has not affected miners’ interest in the original cryptocurrency. On the contrary, the BTC mining hashrate surging in recent months, according to new market research data. Figures also show that Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is experiencing a steep decline in mining activity, raising concerns about the network’s future.
BTC hashrate doubles since May
Sam Doctor, a quantitative strategist at market research firm Fundstrat Advisors, said in a Twitter post on Friday that the Bitcoin network’s hashrate had almost doubled since May, from 28 EH/s [quintillion hashes per second] to 57 EH/s.
Doctor’s analysis also showed that the break-even cost of mining one BTC is now $7,300 compared to $6,000 in May. This calculation includes the depreciation costs of mining equipment and suggests the “fair price” of ...
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