Bitcoin price does not reflect Bitcoin value.
Ok. What does then ? 🤔
Bitcoin’s importance as an independent borderless money can be measured is several ways:
🧑🤝🧑 people who use it (estimated at 300M)
💻 full nodes who verify it (around 15k)
👨💻 miners who secure it (better understood via hashrate – i.e. their collective computational power)
The recent slump in BTC price did not have an impact on these metrics. What’s more, Bitcoin hashrate reached its all-time high of 199 EH/s.
As the network becomes more powerful, the in-built adjustment mechanism that maintains Bitcoin mining stable has increased its difficulty accordingly, and for the first time ever it has surpassed 26 trillion 😮
👉 What does it mean for Bitcoin?
It is more difficult to add blocks to its blockchain -> it is more difficult to mess with its immutability. Bitcoin is well on its way to become the more secure asset ever.
👉 What does it mean for Bitcoin price?
The price reflects the sentiment of market participants. Miners play an important role, as they are by their nature the main BTC sellers.
However, we now see that unlike the lettuce hands 🥬 who panic sell, miners keep their resolve, and not only sell the bare minimum to keep paying their bills, but also building up their capacities.
This is a good sign 😎