Bitcoin rate (BTC): what the crash means for the network

The Bitcoin rate (BTC) is still shaken by international uncertainty due to the coronavirus epidemic. It has dropped nearly 8 percent on the 16th March. The cryptocurrency was $ 4,864.A group that was particularly affected by the current Bitcoin price crash are the Bitcoin miners. The so-called “miners” use angry computer computing power to ensure that Bitcoin’s blockchain is continued. The computers use the proof-of-work mechanism in the network to find consensus. You will receive 12.5 BTC units for each successfully mined block. This reward is halved at fixed intervals: every 210,000 blocks. Due to this increasing reduction in supply, Bitcoin is considered deflationary.

 

Bitcoin rate, hash rate and mining

The Bitcoin Hash Rate tells you how hard the miners are mining for all of this. This indicator has risen steadily in the weeks and months before the crash. Since the next halving was due in May, miners worldwide seemed to want to stock up again “cheaply” with as many BTC units as possible.According to information available from the industry magazine Coindesk, mining companies have been supplying themselves with new equipment since September in order to position themselves as prominently as possible in this competition. Since old devices were no longer profitable, the largest companies put a total of at least $ 500 million in new equipment, Coindesk added.