Crypto Weekly Roundup June 18: Smoking Up Some Hash…rate
Jun 18, 2021
Ok, so we are totally not going to talk about China. Stop it. We are not going to talk about China at all. I am tired of talking about them and I am seriously not going to talk about China anymore.
So, here’s what’s happening in China,
If you haven’t heard yet, China will be banning Bitcoin mining. The crackdown began with Xinjiang and Inner Mongolia mainly because those areas used coal-based electricity, which exponentially shot up their thermal emissions.
When these crackdowns were happening, everyone reported that the government may ease up on Sichuan since the province uses more sustainable hydropower for its mining activities.
However, this past week news came out that the Sichuan Energy Bureau and the Sichuan Development and Reformation Commission will be taking the appropriate measures to close down local Bitcoin miners. So, how has this affected the network hashrate?
It seems like the hashrate has plunged sharply. In fact, on June 10, the hashrate dropped below 100 Ehash/s!
Now, why is this such a major thing? The network hashrate is a term used to define the overall computational power of a network. So, the higher the hashrate, the faster the network calculation and the higher its security. SInce hashrate is such an important metric, it often has a huge effect on Bitcoin’s price. So, it will be interesting to see the ramifications on Bitcoin price over the next few weeks.
Other Interesting Bitcoin Metrics
The first metric that we will check is my favorite one — SOPR (spent output profit ratio). If SOPR is above 1, then it shows that the majority of the coins are in profit and vice versa. As you can see, towards the end of this week, SOPR has dropped below 1, indicating that most addresses are now in the red.
Up next, I want you to check the exchange inflows metric because it’s nothing like I have ever seen before. It seems like throughout the week, the users were holding on to their tokens. However, there was a massive spike in exchange inflows right at the end, which shows that users were sending their cryptos in droves to these exchanges to sell them off.
Anyway, that’s that.
This week was mostly pretty dull price action-wise. However, it’s nice to have some dull moments in this crazy industry of ours.
Oh, and before I go, do you like Bitcoin? Do you like free Bitcoin? I sure do.
Why don’t you take our GetSmart Quizzes? Successfully answer the questions and win some SATs (satoshis)? After that, spread the love and send the quizzes to your friends and family. Let’s all earn some free SATs!
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