Despite all the noise about an impending Bitcoin miner capitulation, the network hash rate seems to be on a steady path. Even the benchmark cryptocurrency’s sluggish performance in recent weeks hasn’t deterred the vast majority of miners from sticking to their gameplans.
The Bitcoin network hash rate is currently hovering around the 100 million Th/s mark — occasionally going way above that milestone figure.
On a closer look, it appears that the broader trend over the past several months has been largely on the positive side. The monthly lows are going higher and there’s no sign of the much-dreaded capitulation at this juncture.
Misplaced Worries?
As BeInCrypto previously reported in October, the Bitcoin network hash rate was 700 percent higher than key historic points, prompting many to speculate on a major price movement. While the price did spike to around $10,600 shortly after, it eventually retreated to the $7,000s in the latter half of November.
Bitcoin has remained strong in most other key areas, as well — including transaction value and user activity on the network.
Bitcoin hashrate trending sharply up again, after yet another "miner capitulation" is canceled ???>? pic.twitter.com/IKkGYEYRq7
— hodlonaut????? (@hodlonaut) December 9, 2019
Bitcoin Halving 2020
For those out of the loop, judging by the previous two block-reward halvings, Bitcoin seems to embark on an upward momentum a year into the event and a year afterward. While the asset has been comparatively one of the best-performing assets in 2019, its inability to move beyond key resistance levels has led to a kind-of unsettling vibe among many miners and investors in recent weeks.
It is likely that older mining rigs will soon go out of business and so will most of the smaller mining companies. The 50 percent reduction in block rewards may simply render mining unprofitable for most of these stakeholders.
Meanwhile, large mining companies could be bracing themselves for an impending setback — especially in anticipation of a scenario wherein a new bullish pattern doesn’t emerge pre- and post-halving. They are highly unlikely to capitulate, however, since they have more capital to navigate short-term market setbacks. Additionally, these companies also have long-term contracts with electricity companies as they intend to remain in the game over the long haul.
Images courtesy of Twitter, Shutterstock, blockchain.com.
