TL;DR
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The greater bitcoin mining difficulty becomes → the more it costs (in electricity) to mine bitcoin.
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Typically, many miners will turn their computers off and wait till it becomes easier (and therefore, more profitable).
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The strange thing is, right now mining difficulty is up, while Bitcoin’s price is down…but miners aren’t switching their machines off – in fact, they’re trying to mine/accumulate as much BTC as humanly possible.
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This suggests miners believe Bitcoin is undervalued, and is due to go up sooner rather than later.
Full Story
To save this article from getting a little long in the tooth – if you’re not already familiar with bitcoin mining difficulty, here’s how it works.
What you need to know here-and-now, is this:
The greater bitcoin mining difficulty becomes → the more it costs (in electricity) to mine bitcoin.
Difficulty usually goes up as bitcoin’s price rises, as more and more miners boot up their computers in an attempt to earn more BTC.
But what happens when mining difficulty goes up (making mining more expensive) while bitcoin’s price drops?
Typically, many miners will turn their computers off and wait till it becomes easier (and therefore, more profitable).
The strange thing is, right now mining difficulty is up, while Bitcoin’s price is down.
…but miners aren’t switching their machines off – in fact, they’re trying to mine/accumulate as much BTC as humanly possible.
So what does that indicate?
These miners believe Bitcoin is undervalued, and is due to go up sooner rather than later.
And they’re putting their electricity bills (money) where their mouths are.
That’s a great sign!
