Excellent news regarding Bitcoin (BTC)
In recent days, there has been some good news involving Bitcoin.
Following the news of the likely entry of the world’s largest asset manager (BlackRock) into the crypto sector, the focus on Bitcoin seems to have shifted somewhat globally, despite the fact that the price has been pinned between $30,000 and $31,000 for weeks now.
Bitcoin news: the new record hashrate
The main good news is of a new all-time record set by the hashrate employed globally on Bitcoin mining.
According to the weekly averages of Hashrate Index, 400 Eh/s was exceeded for the first time in history. Given that a year ago the weekly hashrate average was about 200 Eh/s, it means that in twelve months it has doubled.
It is worth mentioning that hashrate has a considerable cost, given that increasing hashrate increases energy consumption, which is already high.
Therefore, this means that miners are investing more and more in computing power to mine BTC, even at the cost of increasing energy spending.
What’s more, next year their reward per block will be halved from 6.25 to 3.125 BTC.
The daily average hashrate globally peaked on 8 July at well above 465 Eh/s, according to BitInfoCharts estimates, while at the hourly level the highest peak, which was also touched on 8 July, was above 520 Eh/s, according to CoinWarz estimates.
Indeed, block-time lately has also often fallen below 9 minutes, so much so that a significant increase in the difficulty is expected tomorrow.
These numbers seem to suggest rather clearly that miners expect Bitcoin‘s value to increase in the future, since with such low current profitability it certainly is not worthwhile to sell all the BTC that is being cashed in from mining right away.
Despite this, profitability is still above the lows of 2022, when with the price of BTC below $16,000 it touched $0.055 per Th/s per day.
It is currently at about $0.076, but lower than April’s $0.090, when BTC’s market value was about what it is now, but with a 14% lower hashrate.
Growing adoption in Switzerland
Furthermore, recently the head of Lugano’s Plan ₿ initiative, Giw Zanganeh, said the city is seeing a growing use of BTC for everyday payments.
According to Zanganeh, Bitcoin aligns very well with Swiss values, which is why he sees an ongoing development that makes him very optimistic, as many people in Switzerland turn out to be interested in Bitcoin from a philosophical perspective as well.
Then again, the Swiss are often strong advocates of individual sovereignty and financial privacy, which are concepts that are in line with Bitcoin’s basic philosophy, so much so that Switzerland has probably one of the highest per capita densities of Bitcoin-only companies in the world.
Bitcoin news: policy support
The real good news contained in Zanganeh’s statements is that more and more politicians, diplomats, and members of the Swiss parliament and finance committee are becoming Bitcoiners.
Although this phenomenon is not necessarily seen in other parts of the world, it should not be forgotten that Switzerland in this specific area has often led the way.
For instance, it was the first nation in the world to have a law specifically regulating cryptocurrencies, and it was also the first to become a crypto hub in Europe.
In other words, it is not at all impossible to imagine that what is happening now in Switzerland could later happen elsewhere, partly because of the fact that cryptocurrencies were once viewed with suspicion in Switzerland as well.
In other words, even Switzerland was not always crypto-friendly, but it was able to anticipate the trend and become crypto-friendly before others. At this point, especially in Europe, it is possible to imagine other nations following suit.
Zanganeh notes that this is also precisely a cultural shift, probably helped by the Swiss mass culture itself, which is more permeable to this kind of thinking.
In particular, financial freedom, the cornerstone of the philosophical thinking behind Bitcoin, is one of the flagships of Switzerland that is so dear to many inhabitants of the Alpine country.
The global consequences
While Switzerland is indeed leading the way, with other countries eventually having to follow suit, observing what is happening now in the Swiss confederation could realistically give us an idea of what might happen in similar countries in the future.
The important thing is that this is a revolution due primarily to Bitcoin, and not to the crypto sector in general. Altcoins are following closely on the heels of what Bitcoin is achieving, even though they offer alternative solutions that Bitcoin does not.
Thus, it is Switzerland and Bitcoin that are leading the way, with other nations and other cryptocurrencies likely to follow in the future along the path that these two entities are opening.
In the short run perhaps there will be no noticeable upheaval, but in the long run it is very likely that there will be.
What is happening resembles in some ways the adoption of the Internet, which happened almost quietly at first and did not bring about huge single upheavals in the short run, except during lockdowns.
However, when looking back at what global human society was like only twenty or thirty years ago, the upheaval is more than evident, if not total.
However, Bitcoin is still only a revolution in its infancy, and twenty or thirty years from now we may be able to see what disruption it will have been able to create.
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