According to Coinwarz, the Bitcoin hashrate is currently at 157.5 exahashes per second (EX/s) after briefly rising above 160 EH/s. Since writing this, the BTC hashrate has risen 42% in two days. What’s more, over the past 24 hours alone, the BTC hashrate has increased 30% – if maintained, it could indicate that a major difficulty adjustment could be coming soon.
Bitcoin hashrate has increased by around 30% over the past 24 hours
This increase comes after a sharp drop in hashrate at the end of October due to China’s Sichuan mining center’s rainy season. The province’s abundant and cheap hydroelectric power is estimated to attract about 80% of Chinese miners during the rainy season. In December, CoinShares estimated that Sichuan accounted for 54% of global mining activity.
Bitcoin hashrate 1-month chart | Source: Coinwarz
According to Quantum Economics analyst Jason Deane, the sudden spike in Bitcoin hashrate could signify that more Chinese miners have completed their migration out of Sichuan and resuming operations at mining centers. Other localities like Xinjian and Inner Mongolia.
Whoa! big jump in #bitcoin hash rate over last 10 hours (+29.7% trough to peak) Large number of machines just came online somewhere, relocated Sichuan region miners possibly? pic.twitter.com/UKahgQ37Tm
— Jason Deane (@JasonADeane) November 9, 2020
The spike in mining activity shows that the network is capable of producing another significant difficulty tuning.
A major bullish correction will come to the disappointment of non-Chinese miners who have enjoyed increased profits after the apparent exodus in October from Sichuan resulted in difficulty adjustment minus 16% – the second-largest downside correction in Bitcoin history.
BTC market cap is rapidly surpassing the monetary base of multiple national currencies
When Bitcoin soared above $ 14,000, its market cap surpassed the currency base of the Russian ruble.
We can see that the United States has $ 4.9 trillion in banknotes, coins, and bank deposits deposited at the Federal Reserve. By dividing this number by the current 18.5 million BTC, we reach the $ 263.000 outlined above.
For Bitcoin’s market cap to match the US base currency, the price will need to exceed $ 263,000. While this may seem far-fetched, BTC overshadowed many sovereign currencies like the Brazilian real, the Swedish krona, and the Korean won.
According to economist Fernando Ulrich, the top 30 basic money competitors account for 95% of GDP. Aside from the fact that the Euro comprises many countries, some of the top 113 countries have valued their currencies against US dollars.
The researchers at Crypto Voices conclude that:
Researchers at Crypto Voices deduce that, up to now, central banks and governments have maintained the ability to print their money regardless of their gold holdings. Hence, there’s no pressure to search for a new “gold standard” or anything similar from afar.
Inflation lowers fiat prices bit by bit, causing Bitcoin to overtake some currencies as they succumb to too much printing. The global money supply has grown by $ 5,500 billion by 2020. In fact, 2020 has the largest global base money expansion ever registered.
According to some critics, there are some flaws in assuming that BTC will reach $ 100k or more by 2021 and beyond. The ruble has fallen, as are many other sovereign currencies, so all eyes are on the Canadian dollar. As shown in the fiat base money supply chart, the Canadian dollar’s base currency stands at $ 335 billion, equivalent to the Bitcoin price of $ 18,000.
You can see the Bitcoin price here.
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