• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews
Bitcoinist.com
No Result
View All Result
bitcoin btc options
Nexo

How Bitcoin Miners Are Not Causing The Price Plunge

Martin Young by Martin Young
3 years ago
in Bitcoin Mining, Bitcoin, News, News teaser
0
Advertisement

When bitcoin starts to turn south and the selloff intensifies, fingers start pointing. The crypto community wants to blame something and the mainstream media wants to sensationalize fearful headlines to get their clicks.


Bitcoin Miners Not to Blame

This latest slide has been blamed on China (again) and a miner capitulation but recent research reveals that the latter is not to blame. Bitcoin has had a little revival this week with an almost 14% recovery. That would sound good if it hadn’t already dumped over 20% in November.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

We are clearly in a bear market and have been for the past five months. The term ‘miner capitulation’ refers to smaller mining outfits closing down when BTC prices are not high enough to cover their expenses. It happened during the crypto winter of late 2018 when bitcoin dumped below $3,200.

Recent research from Paradigma Capital refutes all the FUD that miners are capitulating, hash rate is plummeting, and reserves are being dumped. The report opens with the declaration that a prevalent preconception is that miners have a somehow disproportionate stronghold over bitcoin prices.

Using economic theory around the supply of nonrenewable resources it adds that an assumption is made that miners will sell reserves when they believe prices will fall, and hold when they believe the opposite.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

The rate at which fresh new coins are released into the market is a function of the inter-temporal arbitrage miners practice.

Miners hold the keys to the fresh supply of BTC, which of course is fixed regardless of how many miners are actively on the scene. There is a collective ‘hive mind’ that controls the supply of new coins into the market.

Metrics For Miners

Miner’s share of on-chain volume (MSV) is a metric that can be used to illustrate their diminishing impact over time. MSV measures the relevance of mining output negotiation in relation to all on-chain volume.

What is the best crypto casino in July 2022? Read our comprehensive comparison! We made deposits, played and reviewed 80+ crypto casinos to choose the best one.

Unlike in the early days of BTC, today nearly all mining rewards are spent from the receiving address on the same day they arrive, which effectively decreases the MSV over time. Back in the day bitcoin could be mined in a garage with a relatively decent spec gaming computer. Today it is all managed by mining pools and they are growing in numbers.

Miner outflow to exchanges is also a measure of how much BTC is being dumped on markets. Using a logarithmic chart shows this to be balanced rather than having a huge effect on prices a month after it happens.

The report is in-depth and includes a number of other metrics to measure mining impact on markets. Seeking correlations, the researchers concluded that miners actually command a very tiny portion of all BTC selling-power in the markets.

If not miners, what has caused BTC to dump this year? Add your thoughts below.


Images via Shutterstock

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Martin Young

Martin Young

Martin has been writing on technology for 15 years, he has a keen eye for emerging cryptocurrency news, blockchain developments, and market sentiment.

Related Posts

Reports Show Alexander Vinnik, BTC Exchange Operator Extradited To The U.S.

Reports Show Alexander Vinnik, BTC Exchange Operator Extradited To The U.S.

14 hours ago
Bitcoin

Bitcoin Is A ‘Remarkable Cryptographic Achievement,’ Ex-Google CEO Says

19 hours ago
Touadéra, a coin with Binance's logo

Binance’s CZ Visits The Central African Republic, Meets President Touadéra

2 days ago
Data Shows Bitcoin Still Highly Correlated With Stock Market

Data Shows Bitcoin Still Highly Correlated With Stock Market

2 days ago
Fintech

Fintech Firm Revolut Unfazed By Bear Market, Hires 20% More Crypto Talent

2 days ago
Tourism In El Salvador Rises Regardless Of The Bitcoin Bear Run

Tourism In El Salvador Rises In Spite Of Bitcoin Bear Run

3 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.