Bitcoin hash rate drops sharply during bear market and consumption too

In the past bear market, many people expected thatflippingwill happen: a Alt currency who replaces Bitcoin (BTC) as the biggest Cryptocurrency will take over. If not, Bitcoin is still the biggest. Until now Hash rate Sharply reduced, as well as consumption.

Bitcoin hash rate and usage decreased

We can see it from Hash rate† This is it Shrinked by 14% in just two weeks after the breakup. The drop occurred between June 12 and 23, the exact time of the crash. Consumption may also have decreased. according to Cambridge Bitcoin Electricity Consumption Index Consumption decreased from about 15 gigawatts per day to about 10.5 gigawatts per day during the same period.

This represents about 0.42% of total energy consumption worldwide, according to Cambridge. The university calculated that Bitcoin needs about 93 terawatt-hours (TWh) per year in 2019. This is actually relatively economical. For example, gold mining is also energy-intensive, costing 131 terawatt-hours (TWh) per year.

It was revealed last week that transactions are currently being sent through the banking system consume 56 times† According to this research, Bitcoin is smart enough, efficient enough, and influential enough to achieve mass adoption.

A treadmill for bitcoin miners?

Changes in the hash rate are very important. This determines whether mass adoption can be achieved. Recently, on-chain data showed that Bitcoin miners recently Sold† This will be due not only to a bear market, but also to a sharply reduced profitability. Miners do their job because they make a profit from it, but very high energy prices mean that miners have to sell more than usual.

in deep diving We wrote last year that there is a relationship between price and retail. It is not clear which of these two threads exactly, but one thing is clear: if one falls, the other also falls. The high price keeps the miners working, and the miners keep the network afloat. In fact, the network cannot achieve mass adoption without rising prices with it. So a low hash rate can create a vicious cycle.