“The price follows the hashrate”. That’s what Max Keizer – a former Wall Street trader and journalist – said about Tweeter.
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It’s not all black
Former Wall Street trader Max Keizer recently tweeted that the downturn in Bitcoin is likely to end. In his tweet, he points out that “the price follows the hashrate” and that “new material is constantly added to the network”.
The hashrate is the total computational power used by a blockchain to send and confirm transactions. In the case of the Bitcoin blockchain, the hashrate has grown more than ever.
While hashrate continues to rise, the price of Bitcoin is still down. Some question the slowness of transactions and the high fees that prevent the currency from being used routinely. Nevertheless, the arrival of Segwit and the Lightning Network will solve many of these current problems.
Charlie Lee, the creator of Litecoin praised these two system improvements:
Bitcoin is a great value store. I will spend ~ $ 1 per transaction, but I can not wait more than 40 minutes for a confirmation! … Lightning Network solves these two problems for Bitcoin and SegWit brings additional solutions!
Overall, Max Keizer is right. This does not mean that Bitcoin will not go down, but the adoption of Segwit and Lightning Network will solve the main problems of cryptocurrency today. This resolution of problems on the Bitcoin network as well as the various institutional regulations will allow large traditional investors to enter the game, which will have an impact on the price and its stability.
This graph shows the curve of the Hashrate increase on the Bitcoin network over a period of one year. It is clear that investors continue to pay more and more attention to Bitcoin because global Hashrate reaches new heights.
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