There has been some good news surrounding Bitcoin over the past few days.
Following the news of the likely entry of the world’s largest asset manager (BlackRock) into the crypto sector, the focus on Bitcoin seems to have shifted a bit globally, although the price has been between $30,000 and $31,000 for weeks.
Bitcoin news: the new record hashrate
The main piece of good news is a new all-time record for the hash rate used in bitcoin mining around the world.
According to the weekly averages of the Hashrate Index, 400 Eh/s has been exceeded for the first time in history. If you consider that a year ago the weekly hash rate was around 200 Eh/s, that means it has doubled in 12 months.
It is worth noting that the hash rate comes at a significant cost as increasing the hash rate increases the already high power consumption.
So that means miners are investing more and more in computing power to mine BTC, even at the cost of rising energy spending.
Additionally, their reward per block will be halved from 6.25 to 3.125 BTC next year.
According to estimates by BitInfoCharts, the daily average hash rate worldwide peaked at well over 465 Eh/s on July 8th, while at the hourly level, the highest peak, also reached on July 8th, is estimated by CoinWarz at over 520 Eh/s was .
In fact, the block time has often dropped below 9 minutes lately, so that a significant increase in difficulty can be expected tomorrow.
These numbers seem to indicate quite clearly that miners expect the value of bitcoin to increase in the future, since with such low current profitability it certainly isn’t worth all the BTC earned from mining immediately sell.
Despite this, profitability is still above the 2022 lows when BTC price was below $16,000 and reached $0.055 per Th/s per day.
It is currently around $0.076, but lower than the $0.090 level in April, when the market value of BTC was roughly where it is today, albeit with a 14% lower hash rate.
Growing acceptance in Switzerland
Additionally, Giw Zanganeh, head of Lugano’s Plan₿ initiative, recently said that the city is seeing an increasing use of BTC for everyday payments.
According to Zanganeh, Bitcoin fits Swiss values very well, which is why he sees continued development, which makes him very optimistic, since many people in Switzerland are also interested in Bitcoin from a philosophical point of view.
On the other hand, the Swiss are often strong advocates of individual sovereignty and financial privacy, concepts consistent with Bitcoin’s core philosophy, so Switzerland probably has one of the highest per capita densities of pure Bitcoin companies in the world.
Bitcoin news: political support
The really good news in Zanganeh’s statements is that more and more politicians, diplomats and members of the Swiss Parliament and Finance Committee are becoming bitcoiners.
Although this phenomenon is not necessarily observable in other parts of the world, it must not be forgotten that Switzerland has often played a pioneering role in this particular area.
For example, it was the first country in the world to enact a law specifically regulating cryptocurrencies, and it was also the first country to become a crypto hub in Europe.
In other words: It is quite conceivable that what is happening in Switzerland now could also happen elsewhere later, also because cryptocurrencies used to be viewed with suspicion in Switzerland as well.
In other words, even Switzerland hasn’t always been crypto-friendly, but it was able to anticipate the trend and become crypto-friendly before others. At present, one can imagine, especially in Europe, that other nations will follow suit.
Zanganeh points out that this is also a cultural shift, presumably fostered by Swiss mass culture itself, which is more permeable to this type of thinking.
In particular, financial freedom, the cornerstone of the philosophical thinking behind Bitcoin, is one of Switzerland’s flagships that is so dear to many residents of the Alpine country.
The global consequences
While Switzerland is indeed leading the way and other countries must eventually follow suit, observing what is happening now in the Swiss Confederation could realistically give us an idea of what might happen in similar countries in the future.
Importantly, this is a revolution primarily due to Bitcoin and not the crypto sector in general. Altcoins follow exactly what Bitcoin achieves, even as they offer alternative solutions that Bitcoin does not.
Therefore, it is Switzerland and Bitcoin that are leading the way, and other nations and other cryptocurrencies are likely to follow the path these two entities are taking in the future.
In the short term, there may not be any noticeable upheaval, but in the long term it is very likely that there will be.
What is happening is in some ways similar to the launch of the internet, which was almost silent at first and did not result in major disruption in the short term except during lockdowns.
However, if one looks back at what global human society was like twenty or thirty years ago, the upheaval is more than apparent, if not outright.
However, bitcoin is still a revolution in its infancy, and in twenty or thirty years we may see what disruption it could have caused.
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