Although the recent sharp declines of the leading cryptocurrency have greatly affected investors, it is noteworthy that Bitcoin miners have dealt much bigger blows.
Miners, who make huge BTC sales due to the increase in the cost of Bitcoin production, cause the seller pressure on the leading cryptocurrency to increase day by day.
Miners, who sold all the Bitcoins they mined in May, are expected to continue selling if the leading cryptocurrency cannot rise in the coming months.
The sales made by the miners, on the other hand, caused decreases in the Bitcoin hashrate rate. While Bitcoin mining difficulty seems to be starting to decrease, confidence in the blockchain of the leading cryptocurrency is also decreasing.
What Will Happen If Bitcoin Hash-Rate Keeps Decreasing?
The decline in Bitcoin price prevents new investors from entering the sector. The fact that crypto lovers move away from Bitcoin causes the decreases in cryptocurrencies to increase.
The continuation of the decreases in the Bitcoin hash-rate rate may cause institutional investors to move away from the sector.
While the decrease in trust in the Bitcoin network is not expected to affect individual investors to a large extent, institutional investors evaluate the hash-rate before buying BTC.
The weakening of the Bitcoin network may cause it to face critical attacks in the future. Even a short-term collapse in the Bitcoin network is expected to cause the crypto market to take a huge hit.