Gamification of Life
Gamification of Life 2 minutes reading from Bitcoin

Bitcoin Price Holds Above $8K Despite Hardfork Talks

Some BTC miners are surviving for now though, this is because they took on heaps of debt under the quantitative easing period in 2020-2021, when interest rates were super low, in the same way many S&P500 companies did

This means they have a lot of cash to cushion themselves during this downturn before they go bankrupt. Some crypto miners also have their own energy sources, or even receive free energy of at least get it very cheaply

BTC miners are also surviving because it turns out BTC can fall to as low as 8K before most miners start to struggle, so they'll all likely be okay for a while. However, it seems every time BTC goes above 20K, miners sell off their BTC

This means the price of BTC will remain suppressed. I also doubt BTC will go to 8K or below simply due to all the volume in the asset, many people are HODLing, including myself. If we all sold off however, this could cause BTC to drop to well below 8K

The European Union recently announced they would pause BTC mining in the event of an energy shortage which may still occur over the winter. If it does, there will be a huge drop in BTC's hash rate which is consistent with previous crypto bear markets 📉

I don't really subscribe to the whole crypto cycle theory, as the current economic climate doesn't provide the right conditions for any sort of crypto rally, and the economy is going to be rough for the next few years at least

And in these coming years, the crypto cycle theory would indicate we would have a rally in that time. We may have small bear market rallies, but I don't foresee any major crypto cycle like what we had in 2021, the economic conditions simply won't allow it

This post is based on this twitter thread.


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