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Crypto Thursday: Hashrate vs. Difficulty for top Cryptocurrencies

Dec 13, 2018

 

 

The Data Daily: Where the charts tell the story

This week we are comparing hashrate vs. difficulty for top cryptocurrencies.

 

From the graphs below we observe:

  • Cryptocurrency mining activity data may provide some clues that explain the recent collapse of cryptocurrency prices, which began on November 14th.
  • The collapse of mining activity that began on November 1st likely resulted in less transaction activity on the BTC network. While network mining difficulty is supposed to adjust, a rapid downturn in the price of BTC that began on November 14th caused problems with the system. We believe that the price of BTC is falling faster than BTC network difficulty can adjust, which causes continued unprofitable BTC mining. Unprofitable BTC mining will continue to drive miners away from BTC, in turn causing BTC mining activity to continue falling.
  • Additionally, this dilemma has been exacerbated by the hash war between Bitcoin Cash ABC (BCH) and Bitcoin SV (BSV), which has seen the largest mining pools pull hash power from the BTC network to contribute mining power to their respective sides of the BCH hash war.

 

Bitcoin (BTC)   Hashrate vs Difficulty - 1 Year

Source: BitInfoCharts

Bitcoin Cash (BCH)   Hashrate vs Difficulty - 1 Year

Source: BitInfoCharts

 

 

Ethereum (ETH)   Hashrate vs Difficulty - 1 Year

Source: BitInfoCharts

Litecoin (LTC)   Hashrate vs Difficulty - 1 Year

Source: BitInfoCharts