Mining machine production has decreased! An important indicator that Bitcoin players often ignore.
Although the price of Bitcoin fell a little on Monday morning, they really should pay more attention to this indicator.
Bitcoin mining has become more difficult, and the difficulty has reached a new high. According to CoinWarz data, the mining difficulty on Sunday directly hit an all-time high of 110.45 trillion. This means that it is now much more difficult to mine new blocks than before.
In the world of Bitcoin, large warehouses (filled with special computers) are racing around the world to solve mathematical problems. Whoever solves it first can process the transactions in the block.
After solving the problem, these blocks will be added to the Bitcoin transaction record, and the miner who solves it the fastest will get the newly issued Bitcoin as a reward. This reward mechanism relies on a technology called hashing, which is to turn data into a string of letters and numbers of a fixed length.
Mining is a complicated thing, and it costs a lot of money, equipment and electricity. But if you dig it up, the reward is also considerable. For every block mined, you can earn 3.125 bitcoins, which is about $295,000 at current prices.
The higher the difficulty of mining, the happier Bitcoin users should be, because it means that the Bitcoin network has become stronger and more secure.
Previously, the market value of Bitcoin reached a new high, with one coin exceeding $108,000. But then the price fell because people were worried that the US central bank would slow down its interest rate cuts. Like stocks, cryptocurrencies usually perform better when interest rates are low.
Now the price of Bitcoin has returned to around $94,170, according to Coingecko. Although the price fell below $90,000 on Monday morning, it has since risen back.
So I think in terms of rarity, its price should go up, because more and more wealth is generated by people, but it is indeed a fixed amount, so the wealth it carries will inevitably increase on the basis of consensus.
