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Changes in Mining Is Driving Bitcoin Price: Will Bear Market End?

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Less efficient mining operations are leaving the network and are hence lowering the “hashrate” which is technically the power of mining.

Analysts are reading into a major indicator to study to forecast market action. A ‘change’ in difficulty faced by miners of bitcoin is the basis of their latest analytics. Their research has found that the less efficient mining operations are leaving the network and are hence lowering the “hashrate” which is technically the power of mining.

 

Element Group Research Findings

Heading this research segment is Element Group, asset analysis, and consultancy service in the virtual cryptography space.

The organization’s work reveals that there is a dependence that was unearthed between mining difficulty and the movement which bitcoin prices take.  The specific finding of the group is that – in the eventuality of a reduction in the mining difficulty occurrence is sharply correlated to the market cycles reaching the bottom. In this phase, bitcoin sale pressure will have subsided, and prices will be at their least levels.

 

 How is mining less difficult now?

The difficulty in mining is lowered since the script always attempts to keep mining to ‘ten minutes per block’ and has been adjusting the ‘difficulty so as to overcome the loss of hashrate.

Technically, it is indicated that the fall in mining difficulty will invariably mean the power of mining is exiting the network, because of the script-adjustment timed for 10 minutes.

Miners are likely to leave the network, reason analysts though they are not able to provide exact or clear answers in this aspect. According to reports by Element Group, the lower is the bitcoin price then the increase is the pressure on the mining operations resulting in those which offer the least efficiency to quit the operations. When this happens, the network’s hashrate will be lowered and eventually the difficulty in mining.

When rewards for bitcoin mining is higher as well as higher efficiency in mining, there is a decrease in the selling pressure coming from the miners who are yet engaged in the mining activity and sell less number of bitcoins apart from costs of operations.

There is evidence of such a play-out from historical data. There was a sudden hashrate rise in 2018. This was equivalent to 500%. Then it was leveled during which the prices dropped and eventually consolidated at 6,000 range. During this phase, the drop from the high was in the range of $19,000 and more. This resulted in more hashrate for fewer dollar returns. It also resulted in more competition.

The hashrate leveling led to miners leaving the operations as work became very hard. This led to the consolidation of the network as well as the mining power and is currently unprofitable for many. The members of the loss-making group were typically novices at mining.

 

Less difficulty will end the bear market

Researchers are indicating that something new shall emerge due to this directional change, and one of which could be the end of the bear market. There are many celebrity cryptographers who have claimed that bitcoin price will always follow hashrate and hence the price stability will always remain static.

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Bitcoin is Halal? Will crypto rise with mass Muslim adoption?

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Many Islamic Scholars are discussing the real nature of cryptocurrencies with some of them calling it a 'HARAM' while others calling it a 'HALAL'.

Erol Yarar, the chairman of the international business forum has suggested all Islamic nations to adopt the cryptocurrency system for transactions with each other rather than adopting the US Dollar as according to him the US Dollar is used as a weapon by the United States to wreak economic havoc.

 

Calling US Dollar a ‘Punishing Tool’

Yarar expressed his concerns by stating that the US dollar is used by the United States Government to punish a specific country that the United States is not willing to be in peace with. He also stated that the United States Government uses the US Dollar to lower down the money transactions, for imposing sanctions and for making nations bowing down in front of the United States.

 

Yarar said that the US Dollar is not just a common currency but also a sanctioning tool. Also saying that at the International Business Forum this year, they will discuss the term monetary pluralism for implementing a democratic trading environment and the top features to be discussed at the next International Business Forum meeting would be the usage of Blockchain Technology and Cryptocurrency for the financial sector in the Muslim countries especially the middle east.

 

Yarar said:

“We will make a cryptocurrency system, that will be used for international trade among Islamic countries, a current issue.”

 

Bitcoin Halal?

Many Islamic Scholars are discussing the real nature of cryptocurrencies with some of them calling it a ‘HARAM SYSTEM’ or ‘ILLEGAL SYSTEM’ while others calling it a ‘HALAL SYSTEM’ or ‘LEGAL SYSTEM’ according to the Islamic principals with some Mosques such as the Shacklewell Lane Mosque in London have also started to accept cryptocurrencies as donations.

 

What do you think about bitcoin and other cryptocurrencies being termed as Halal? Tell us in the comments section below.

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Bitcoin ETF: Worlds first Cryptocurrency ETF approved

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ETF: The world's first Cryptocurrency ETF has been approved by the Switzerland authorities which will start trading on SIX, 4th largest exchange in whole Europe.

The world’s first Cryptocurrency ETF has been approved by the Switzerland authorities which will start trading on SIX, the 4th largest exchange in whole Europe which has a market capitalization of over $1.6 trillion.

 

ETF offered by Amun AG

Amun AG, a cryptocurrency startup is offering the fund that will allow the institutional investors to invest in the major cryptocurrencies such as bitcoin, ethereum, ripple, litecoin, and bitcoin cash.

Hany Rashwan, the CEO and Co-founder of the company said that the following ETP will provide an opportunity to the institutional investors that are restricted to investing in just securities and also give the same opportunity to retail investors that are unable to access cryptocurrency exchanges to due regulatory pressure. The CEO also said that before choosing Switzerland, the company had explored 23 other destinations around the world but found Swiss the most suitable.

 

The ETF will allow investors in buying the market and investing in crypto market as a whole. When investors will be investing in a fund, an amount equal to their purchase value will be held on their behalf by the custodian.

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Bitcoin Cash BCH Hash Wars: Who is winning?

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The Bitcoin Cash hash war is still on with close to 300 blocks mined on the BCHABC side using the new ruleset, which has also given the BCH network the most accumulated proof of work. Cryptocompare has given the BCH ticker to BCHABC chain followed by Bittrex also appointing the ABC chain with the BCH ticker. The ABC chain has gained more support and also mined more blocks since the split of the BCH chain into BCHABC and BCHSV. The SV chain has performed less work till now.

 

Faketoshi “Satoshi’s Shotgun”

Craig Wright had earlier threatened that he will destroy the BCH ABC chain by mining empty blocks using his huge hash power, which is being called “Satoshi’s Shotgun”. BCH ABC has apparently survived the Shotgun. Peter Rizun from Bitcoin Unlimited said:

“The difference in network effect stark: BSV has few users, no OSX or Windows clients, no block explorer, perhaps one mobile wallet, and a shotgun that doesn’t shoot so straight,”

According to cash.coin.dance, BCH ABC is currently 51.9% ahead on proof of work and is 15 blocks ahead, meaning miners will to secure the BCH ABC side and that exchanges ca resume deposits and get everything back to normal. Many supports believe that the ABC side has already won the battle.
Bittrex has listed the ABC chain as BCH and the SV chain as BSV.

While many BCH supports are claiming that the war is over and the ABC side is close to winning it, SV supporters still believe that the hash war will continue for weeks and Craig Wright continues to claim that he will destroy the ABC chain by mining empty blocks.

What do you think about the hash war? Comment below

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