Bitcoin Hashpower Doubled Since May Despite 70% Correction

Fundstrat, a Wall Street-based investment firm led by Tom Lee, reported that the hashpower of Bitcoin has doubled since May.

“Despite BTC bear market, hashpower doubled since May to 57 EH/s – Even with upgrades to existing equipment, implies almost 1GW of new power consumption vs 5.2GW in May ’18. Breakeven now $7300 ($5300 cash BE) vs. $6000 in May,” Sam Doctor at Fundstrat said.

Exponential Increase in Mining Activity

Since February, the valuation of the cryptocurrency market has fallen by more than 80 percent. Yet, mining activity in the cryptocurrency sector has continued to increase at an exponential rate.

The difficulty of Bitcoin mining, which measures how difficult it is to find a hash below a given target, changes based on the hashrate of the dominant cryptocurrency. If less people are mining Bitcoin, then the difficulty of Bitcoin mining declines. But, when more people mine it and the hashrate of the network increases, the difficulty of Bitcoin mining…