The post Hashrate: An Underrated Asset That Smart Crypto Businesses Should Utilize appeared on BitcoinEthereumNews.com.

It’s easy to dismiss hashrate as a metric that’s of concern to miners and no one else. After all, unless you’re running an ASIC farm, why should you care how much exahash the Bitcoin network is producing per second? Actually, if you’re a crypto business that’s actively trading digital asset markets, you should care a lot. Not only does monitoring hashrate reveal insights into price projections for PoW assets such as BTC but it forms a market in its own right that can be traded like any other. And it doesn’t require expensive hardware or a deep knowledge of the mining economy to exploit. The availability of two-sided hashrate marketplaces makes it easy for crypto businesses to profitably trade it just like a conventional asset. All it takes is a basic understanding of the forces that govern the price of hashrate – and the ways in which it can be used within the cryptoconomy. Why Hashrate Matters Monitoring the hashrate for proof-of-work cryptocurrencies like Bitcoin provides a number of benefits for miners, investors, developers, and other stakeholders. Understanding the trends that influence hashrate provide insights into a network’s health, profitability, and potential future developments. Rising hashrate can indicate that miners expect future profitability, which is a bullish indicator. Similarly, a sudden drop in hashrate can signal a bearish trend, as it may indicate miners are leaving the network due to falling profitability or increasing difficulty. But it would be a mistake to correlate hashrate levels purely with the price movement of PoW cryptos because there’s a lot more that can be done with this valuable resource. Crypto miners are incentivized to optimize their ASIC and GPU devices to extract every last bit of processing power out of them and to run them 24/7 with as little downtime as possible. But…

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Filed under: News - @ September 13, 2024 8:20 pm