The post Current Bitcoin Hashrate Can Sustain $4.9 Trillion Cap, CryptoQuant CEO Reveals appeared on BitcoinEthereumNews.com.

Este artículo también está disponible en español. The founder and CEO of the on-chain analytics firm CryptoQuant has explained where the peak Bitcoin market cap lies based on the current hashrate. Bitcoin Ceiling Could Lie At This Level Based On Network Hashrate In a new post on X, CryptoQuant founder and CEO Ki Young Ju discussed a BTC pricing model that puts upper and lower bounds on the cryptocurrency’s price using the trend in the mining hashrate. The mining hashrate here refers to a metric that keeps track of the total computing power the miners have currently connected to the Bitcoin blockchain. Miners use their computing power to compete against each other to become the first to solve certain mathematical puzzles and receive the block reward as compensation. Related Reading Given that BTC can’t exist without the miners or, at least, not be as secure without a decentralized network, some believe the intrinsic value of the cryptocurrency can be measured using the hashrate. After all, the Bitcoin miners have to pay constant electricity bills to host the hashrate, and they would only be willing to run as many farms as would be worth it. The chart below shows that the BTC mining hashrate has been rising recently and setting new all-time highs (ATHs). The trend in the BTC mining hashrate over the past year | Source: Blockchain.com The reason behind this uptrend is the rally that the asset has been observing; price is the main variable for the revenue of these chain validators, as the block subsidy they receive in BTC naturally fluctuates with it. Speaking of the block subsidy, a feature of the BTC network is that its value is permanently slashed in half about every four years in an event called the Halving. A consequence of the Halving…

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Filed under: News - @ November 27, 2024 9:25 am