When miners cut back on their investment, the hash price of bitcoin hits a record low.
BlockBeats reports that on June 29, Ki Young Ju, the CEO and creator of CryptoQuant, declared on social media that the hash price of Bitcoin has dropped to an all-time low. Due to market uncertainties, several mining companies have reduced their investments in mining equipment, and some have resorted to other Proof of Work (PoW) currencies.
Luxor, a Bitcoin mining service provider, is credited with coining the phrase “hash price.” It speaks of the anticipated amount that can be produced daily for every PH or TH of processing power. This measure expresses how much money miners can anticipate making from a certain quantity of computational capability. The decline in hash price is a sign that mining Bitcoin is becoming less profitable, which has caused mining corporations to reduce their investment.
Some businesses are switching to different proof-of-work currencies as a hedge against the volatility of the Bitcoin market. By taking this action, they may be able to diversify their holdings and lower the risk brought on by the volatility of a particular cryptocurrency. It is yet unclear, though, how this change will ultimately affect the Bitcoin market and the cryptocurrency sector as a whole.