While mining bitcoin these last few months, many of these mining firms have instead of selling the Bitcoin, take a loan with Bitcoin as collateral. They intended to sell at a profit after the bitcoin halving. However the current price drop has lead to them lose or ‘most likely’ lose their bitcoin at a much bigger loss. And we hope this is not the case with most mining firms.

The one thing you can do, and if it feasible for you, do some Bitcoin mining. It will should help our network. It’s not going to be profitable at the moment but if a lot of us do this it might help in case there are big issues. Again the possibility of things getting worse are bleak but the reason we analyse situations is to be aware and be prepared.

The REAL test of Bitcoin is now, if the bitcoin hashrate still remains as strong and the price fluctuation keeps most mining operations working even for a month post halving Bitcoin then we have gone through the tough part and it’s safe to say that the bitcoin network is of IMMENSE value and been through the test of time. This test will be the best proof Bitcoin’s value and strength for decades to come and a reason to strengthen your belief in the value, technology, network and everything else with it.

References:

https://hut8mining.com/hut-8-responds-to-coronavirus-covid-19-pandemic-concerns-and-drop-in-bitcoin-price
https://simplywall.st/stocks/ca/software/tsx-hut/hut-8-mining-shares/news/is-hut-8-mining-tsehut-using-too-much-debt/
https://cryptoslate.com/bitcoin-hashrate-barely-dropped-price-crash-to-3600-heres-why-its-a-positive-sign/
https://twitter.com/btc_jacksparrow/status/1239056101603028992

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21 replies
  1. 03chrisv
    03chrisv says:

    I predict crypto winter for the rest of this year. A good opportunity to accumulate no doubt but dont expect a major bull run this year. In fact I don't think the support at the $5k region is going to hold. We very well could be retesting last year's bottom again.

    Reply
  2. Courtland Majory
    Courtland Majory says:

    Let’s be honest, this virus has everyone on worried and scared. For good reason, people would start selling their assets( Btc, gold, stock or silver) and the pandemic level would be announced soon; Right now people need cash to be on a safe side because it is the safest asset in the immediate short term. They could have done it in a heartbeat by stopping the flow of new coin entering the market through Partner exchange. Dollar cost averaging is one way to go about increasing your position but it is expensive and less efficient, so what I do is I trade daily then hold 50% of my profit and exchange the other 50% to Fiat. I am accumulating now and taking out profit. I am not an expert trader but I am a smart one because I trade with Nathaniel Whittemore and he provides a lot of insight and signals. I have grown my position from 3 btc to 9.050 btc in less than a month. Nathaniel is truly a genius and his prediction are accurate, efficient and gives you a constant profit streak. He can be reached through telegram on trade_nathaniel also nathanielwhittemore7@gmail on how to profit better.

    Reply
  3. M. D.Crypt
    M. D.Crypt says:

    A word of prudence would be not take long term solace because of the fact the hash rate hasn't dropped in such a short period of time. That could occur later.
    The hash rate will drop if the pain of losing money, especially with lower rewards after the halving, is extended over a prolonged period of time, i.e. post halving possibly into 2021. A miner can risk losing only for shorter periods of time.
    Price and mining efficiency and length of time at certain price levels, and how much debt a miner has are key factors.

    Reply
  4. Jack Gordon Smith
    Jack Gordon Smith says:

    With all this downward pressure and the halving in sight it will be a tough time for leveraged miners. But they will be in good company. Many small businesses will go bust before we come out of this Corona virus

    Reply

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