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Miner ‘Death Spiral’ A FUD? Bitcoin Miners Back In Action As Hash Rate Surges

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A FUD regarding Bitcoin miner ‘death spiral’ had been surfacing the crypto community as the halving was underway. However, the latest charts suggest otherwise as hash rate hits an all-time high.

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Miner’s Miles Away From ‘Death Spiral’

The first and the largest cryptocurrency, Bitcoin was programmed to undergo a process called the “halving” once, every four years. During this process, the rewards that the miners receive after the addition of new blocks, are cut into half. The latest halving took place on 11 May 2020, where the mining reward was lowered from 12.5 BTC to 6.25 BTC. While industry expected the price of the king coin to witness a significant increase, Bitcoin observed dainty price changes and is still trying to breach 10k.

Another news that surfaced the crypto-verse post halving was that miners would no longer profit from mining which would eventually lead them to stop mining. This did cause distress in the crypto space and the hash rate also fell down to a low of 90.293 TH/s towards the end of May. This further led to several believing in the whole Bitcoin miners were in the death spiral scenario. However, the latest updates defy this narrative.

Recently, Bitcoin’s hash rate hit an all-time high of 125.99 TH/s.

Source – Blockchain.com

Dan Held, the Director of Business Development at prominent cryptocurrency exchange, Kraken also commented on the latest update suggested that the entire miners’ death spiral narrative could be debunked considering the significant rise in the hash rate post halving. His tweet read,

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Another factor that inclined towards the flawed nature of the death spiral narrative was the sale of mining equipment. Prominent Bitcoin mining equipment manufacturer, Bitmain has been a constant member of the headlines following the tiff between the founders of the company. Despite this, the platform has been selling off all their equipment. Almost, every product on the Bitmain website was sold out.

Source – Bitmain

All of these factors strongly highlight the fact that Bitcoin miners weren’t biding adieu to mining post halving.

Bitcoin’s Price Moves Sideways

Last week, altcoins enjoyed an eventful week following significant price rallies. However, the price of Bitcoin wasn’t seen either rising or falling. While many altcoins endured a rise in the price of almost 90 percent over the past week, Bitcoin witnessed a mere 1.5 percent increase in the last seven days.

Source – CoinGecko

While the crypto community has been anticipating Bitcoin to hit 10k , the king coin was trading at $9,268.56, during press time.

Miner Death Spiral A FUD? Bitcoin Miners Back In Action As Hash Rate Surges
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Miner Death Spiral A FUD? Bitcoin Miners Back In Action As Hash Rate Surges
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A FUD regarding Bitcoin miner ‘death spiral’ had been surfacing the crypto community as the halving was underway. However, the latest charts suggest otherwise as hash rate hits an all-time high.
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Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

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The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.

Author: Sahana Kiran



Sahana Kiran is a graduate in Political Science, Economics and Journalism. She is a full-time crypto writer at CoinGape and takes a keen interest in cryptocurrencies, especially Ethereum and Bitcoin. Even though she’s not a HODLER yet, she has eyes on Bitcoin.

Source: https://coingape.com/miner-death-spiral-a-fud-bitcoin-miners-back-in-action-as-hash-rate-surges/

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Dharma Domination Drive Thwarted as Uniswap Vote Concludes

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DeFi protocol Uniswap has concluded its first governance vote with a failure to come to quorum by a minuscule margin. The good news is that it keeps the platform relatively decentralized … for now.

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The first governance vote for automated market maker Uniswap concluded on October 20 with 98% of the votes in favour of the proposal, but that wasn’t enough to secure it.

Uniswap
Image – uniswap

As previously reported by CoinGape, the highly-contentious proposal raised a number of centralization concerns as it would effectively grant the most voting power to the largest couple of UNI holders, which were Dharma and Gauntlet at the time.

Crypto trading platform Dharma proposed a reduction of the thresholds for voting and quorum from 1% of the total supply to 0.3%, and 4% of the total to just 3% respectively. It has been reported that Dharma was not happy with the airdrop and distribution of UNI tokens and felt that their users should have got more.

Winning this vote would have enabled Dharma to have more control over the distribution process through subsequent proposals, which it would have won with collaboration from Gauntlet.

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A Whisker Short of Winning

In order to seal the proposal, 40 million votes were required but it fell just short with just below 39,600. The majority of those came from just three accounts held by Dharma, Gauntlet, and Yuni.Finance, which is managed by other DeFi whales and big bag holders.

Naturally, the Dharma CEO and co-founder was disappointed with the outcome, almost calling it ‘undemocratic’;

While other industry observers hailed it a victory for ‘everyday users’ and against centralization;

DeFi Watch’s Blec added;

“The vote didn’t pass because users learned about the issue and decided not to vote for it. This is how tokenized governance is *supposed* to work. Votes shouldn’t just pass by default.”

Many simply abstained from voting either not wanting to spend the gas or seeing little point in going against the whales which had the majority.

UNI Price Reaction

UNI prices have retreated around 4% over the past few hours as news of the failed proposal circulates. As with the voting, the largest bagholders have the greatest influence over markets and price action should they decide to sell.

Currently, UNI prices are down over 60% from their peak on September 19. Prices may descend further when yield farming pools expire on November 17 and rewarded tokens flood the markets.

To keep track of DeFi updates in real time, check out our DeFi news feed Here.

Author: Martin Young




Martin has been writing on cyber security and infotech for two decades. He has previous forex trading experience and has been covering the blockchain and crypto industry since 2017.

Source: https://coingape.com/dharma-domination-drive-thwarted-as-uniswap-vote-concludes/

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Bitcoin Price Eyes $12,000 Following US Fed Chair Powell Talks

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  • Bitcoin’s price finally made a worthwhile move after surging to $11,840 on Bitstamp following days of stagnation.
btcusdh_chart
BTC/USD. Source: TradingView
  • The price has since retraced a bit to trade at its current level of around $11,780. Nevertheless, this is a move in the right direction as concerns started crippling up that we might be in for a fill of the CME gap down at $11,100.
  • Bitcoin is trading approximately only $700 away from the $12,500 area – the 2020 highest level that was reached on August 17. The next major resistance for BTC now lies at $12,000 – $12,100.
  • The move came soon after the Chairman of the US Federal Reserve, Jerome Powell, spoke on a panel hosted by the International Monetary Fund (IMF).
  • During the event, he said that the US is “committed to carefully and thoughtfully evaluating the potential costs and benefits of a CBDC (Centra Bank Digital Currency) for the US economy and payments system.”
  • He also said that it’s better to be right than be first on CBDCs.
  • Interestingly enough, BTC’s move appears to be uncorrelated to the US stock market. At the time of this writing, the S&P 500 is down about 0.4%, while the Dow Jones Industrial Average (DJI) is down about 0.3%.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/bitcoin-price-eyes-12000-following-us-fed-chair-powell-talks/

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33 Years Since Wall Street’s Black Monday: Have We Learnt Nothing? (Opinion)

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They say that to see the future, one should only learn history. Oftentimes, though, we tend to ignore history altogether.

Exactly 33 years ago, on this day, October 19th, 1987, Wall Street and global markets tumbled in a massive selloff that saw the S&P 500 lose about 20% and the DJIA about 22%.

One might think that this is something that we don’t want happening again and that the economic policies would be structured in a way where massive national debt doesn’t mount up. Here we are, 33 years later, and the US national debt has increased by roughly 12 times.

But it doesn’t matter, right? The Fed can always just “print more money,” as the former Chairman of the US Federal Reserve has said.

Rolling Back to 1987: What Happened and Why it Matters?

The year is 1985. The United States policymakers and economists decided that the time is ripe for a shift in the direction. As such, they moved to a slower expansion approach, unlike the state of rapid recovery from the recession in the early 1980s.

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Fast forward a few years when on October 14th, 1987, the House Committee on Ways and Means introduced a tax bill that was aimed at reducing the benefits associated with financing leveraged buyouts and mergers.

October 19th comes, and traders, analysts, and economists found themselves dismayed as markets took a beating. The S&P dropped by over 20%, while the DJIA was down 22% in a single session. Additionally, markets from across the world were also bleeding out, making this into a global downturn.

black_monday
Dow Jones during Black Monday of 1987. Source: Wikipedia

Back then, Nobel-winning economist Robert Shiller surveyed 889 investors right after the drops to find the reason, according to them. Most of them said that it was perhaps brought on by “too much indebtedness.”

Looking at historical data, the US national debt in 1987 was around $2.3 trillion, representing 48% of the country’s GDP.

Learn From History, or You’re Destined to Repeat It… Right

The year is now 2020, and we just saw the third quarter closing down. In March, there was another Black Swan event that saw global markets tumble in response to the outbreak of the novel coronavirus COVID-19. Countries were literally locked down, and economies suffered as a consequence.

The US was no exception. In fact, it’s the current leader in terms of total cases of COVID-19. However, it’s worth noting that this year, unlike back in 1987, there was an obvious trigger as global economies were virtually shut down in response to the outbreak.

Their response, however, was criticized by many. Data shows that the US national debt has grown to $26.5 trillion at the end of the second quarter of 2020. This represents 136% of the country’s GDP. In fact, the debt increased by around $4 trillion this year alone. For reference, it grew with that much from 2015 to 2019 combined.

When there’s an obvious uncertainty of how the world will handle the pandemic, US stock markets are charting all-time highs. And all of this was made possible by the trillions of dollars printed to bail out huge corporations.

This Time Could Be Different… But Will It?

Of course, this time, we have Bitcoin – a scarce digital asset that comes with pre-programmed inflation that will, eventually, disperse.

However, it also challenges the very essence of what banks are created for. It’s the first real attempt to separate money from state and … well, that’s scary for some.

Bitcoin’s censorship resistance, immutability, actual transparency, and, most of all, digital scarcity are just some of its inherent qualities that could make a change. However, it’s definitely questionable if and when that will happen.

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Source: https://cryptopotato.com/33-years-since-wall-streets-black-monday-have-we-learnt-nothing-opinion/

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