The cryptocurrency market’s rapid movement towards mainstream adoption has been an ongoing process, with several factors like mining and hedging coming into play. The cryptocurrency market’s bear run, which is the longest in its recorded history, has not managed to cull the interest among users who wish to delve deeper into the functionalities of the space.
In a recent quarterly report released by Token Insight, the organization predicted cryptos’ mining difficulties, while also touching upon the important topic of cryptocurrency hedging. The report stated that Bitcoin’s mining difficulty went up by 30%-50% because of falling hydro-electricity costs leading to the shutdown of machines such as the Antminer S9 and T9, as well as the MicroBT Whatsminer M3. According to the report,
“Difficulty adjustments during the first and second quarter of 2019 are to be expected. The last bull market period of BTC lead to a large remnant of hash power, which is impossible to be multiplied by the capacity of Samsung and TSMC chips.”
The report also highlights a steady increase in hash rate. Earlier records stated that BTC’s hash rate held at 45.76 EH/s with a difficulty of 6.39T, which can increase to hold at a hash rate of 53.33 EH/s and a mining difficulty rate of 8.31T. Token Insight further clarified,
“In optimistic estimate, by the end of 2019, BTC mining hash rate could grow by 50 percent at most to 68EH/s with the difficulty to 9.59T.”
The report also predicted that just like Bitcoin, the hash rate and the mining difficulty of Ethereum could also increase to 243 TH/s and 2360T, respectively. An analysis of Ethereum’s mining difficulty conducted in February indicated that the cryptocurrency’s mining difficulty rose by 20 percent over a 7-day period.
Cryptocurrencies like Litecoin [LTC] and Dash were also the subject of the report. The analysis predicted that Charlie Lee’s Litecoin may witness a 20%-80% rise in difficulty and hash rate while Dash would see its difficulty and hash rate rise by 60% – 200%.
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Engineering graduate,crypto head and Arsenal fan. Is fascinated by technology and all its marvels. Strictly against pineapple on pizza.