The ruler hits the second lowest ever
As on-chain metrics converge to hit the BTC/USD classic macro bottom, new contenders suggest Bitcoin is even more oversold than the average hodler believes. increase.
Bitcoin Yardstick measures the ratio of Bitcoin market cap to hash rate. Comparing these two fundamental metrics provides important pricing insights.
As Edwards explains, the lower the value, the “cheaper” Bitcoin is, and more hash rates are applied to secure the lower priced coin.
He warns that it is “not investment advice,” but that makes sense to potential buyers.
Currently, the hashrate of the Bitcoin network is shortly It’s down about 75% from the last high seen in November 2021.
“Today, the Bitcoin Yardstick reading is the second lowest in the history of Bitcoin,” said Edwards.
“This means Bitcoin is very cheap in relative terms given the amount of energy used in the world’s most powerful computer networks.”
Bitcoin Hashrate Continues
Yardstick influences the concept of Proof of Work (PoW), the Bitcoin network’s mining algorithm, and its ability to store and grow value over time based on production activity. Bitcoin standardsThe writings of Cyphedian Amos focus on this idea.
On the other hand, the bull market years of 2013 and 2017 created a situation in which prices were high relative to the work done, contrary to the current scenario.
2021 saw several spikes when Bitcoin doubled in April and November respectively, but none matched the size of previous peaks.
As reported by Cointelegraph, Bitcoin miners are under considerable stress Despite hashrate surges as profit margins are squeezed.
Already in the summer there was a period of minor “surrender”. proof of recovery Ongoing in August.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.