Friday, December 3rd 2021 - Issue #1124

Approaching hashrate all time highs

If the recent trend in Bitcoin network hashrate growth continues pace, we should see new all time highs by the end of the year. This is an incredible development when you take the CCP's ban on all mining operations within China in May of this year. At the time of the ban many, myself included, surmised that hashrate wouldn't fully recover until well into 2022. I am happy to report that it seems that many of us were wrong. The Bitcoin network has proven to be extremely robust and dynamic.

Economic incentives are one hell of a drug. The pace at which the economic actors within the mining industry moved to unplug, pack, ship, and plug in miners is extremely impressive. Of course the recovery was aided by new deliveries hitting the market as well, but the global coordination to find the ASICs that were forced to leave China new homes cannot be overstated. A dormant miner is a physical option of future block rewards that isn't being taken advantage of. Every block a miner misses is sats left on the table and extends the expected return of capital. With this in mind, operators worked day and night to find electricity and rack space to get those options back up and producing. In the process, helping get network security back to a place where it is much harder to attack the network.

As of right now, we are due for an upwards difficulty adjustment of 6.2% in 693 blocks.

If hash rate remains static between now and the next adjustment (it won't but please appease my thought experiment) difficulty will hit 23,720,470,143,610, which would be 5.2% away from the difficulty all time high set in May. It wouldn't be surprising to see a new all time high before the new year. This will be something to keep an eye on in the coming weeks.

Bitcoin is so damn beautiful. One of the most powerful despotic regimes in the world tried to deal a major blow to the network and it barely flinched. This is very very very bullish and it hasn't been appreciated by the market yet.

Final thought...

Sundays with family and friends are great days.

Share

Forward

Hope you enjoyed today's issue. If you have any friends that are looking to find out more about Bitcoin have them sign up for this newsletter here:

Get Ƀent

Ƀent noun 1. direction taken, as by one's interests; inclination.

Thanks for reading Marty's Ƀent, a daily newsletter containing all the information I found interesting in the Bitcoin world in the last 24 hours.

Marty's Ƀent - December 6th, 2021 - Issue #1124

Approaching hashrate all time highs

Older messages

The Sat Standard - Bitcoin Weekly - Dec 4 2021

Marty's Ƀent - December 2nd, 2021 - Issue #1123

Marty's Ƀent - December 1st, 2021 - Issue #1122

Marty's Ƀent - November 30th, 2021 - Issue #1121

Marty's Ƀent - November 29th, 2021 - Issue #1120

You Might Also Like

Bitcoin’s realized volatility surges in as traders face extreme price swings

Asia's weekly TOP10 crypto news (Mar 3 to Mar 9)

Trump declares end to ‘war on crypto,’ vows to propel America to Bitcoin supremacy

⚡ incentive → click → sale

Weekly Project Updates: World Network Launches Chat Feature, Zora Set to Introduce Its Native Token, and Trump Ann…

Treasury Secretary Scott Bessent hints at future US Bitcoin reserve acquisition plans

NFT & Gaming - 🦁 Loaded Lions’s LION went live and was the top gainer on CoinGecko; Trump-owned company DTTM Oper…

WuBlockchain Weekly: Trump Officially Signs Executive Order for U.S. National Bitcoin Reserve, White House Hosts C…

Cardano’s Charles Hoskinson reacts to White House crypto summit snub

Monthly Update on Blockchain Technology: Pectra testnet activation, zero-knowledge gossip, BNBChain roadmap