Bitcoin Price and Bitcoin Mining are Correlated

Bitcoin price and Bitcoin mining have a very strong correlation. The fall in Bitcoin’s price has brought in huge losses to Bitcoin miners, which eventually have led to the dumping of several mining rigs. When the prices of assets like gold fall, it is a huge loss for the miners; the same thing applies to the cryptocurrencies as well. But what exactly does the term “Bitcoin Mining” means, and how is it related to the price fluctuations of Bitcoin. Let’s find them out in detail.

Bitcoin Mining

Before going into the details of Bitcoin Mining, let’s put it in simpler ways. Traditional currencies like Dollars or Euros are controlled by the Central banks that have the power to issue new units of these currencies whenever they think is perfect for the improvement of the economy. But, where do these Bitcoins and other cryptocurrencies come from? They do not have any central bank to support them.

Unlike other assets like gold which are mined from the underground, Bitcoin mining is…