TL; DR
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The greater the difficulty in mining bitcoin becomes → the more it costs (in electricity) to mine bitcoin.
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Normally, many miners will shut down their computers and wait for things to get easier (and therefore more profitable).
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The strange thing is that mining difficulties have increased at the moment, while the price of Bitcoin has fallen… but miners are not shutting down their machines – in fact, they are trying to mine/accumulate as much BTC as humanly possible.
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This suggests that miners believe that Bitcoin is undervalued and will rise sooner or later.
Full story
To avoid making this article a bit long, if you’re new to the difficulty of bitcoin mining, here’s how it works.
What you need to know here and now is this:
The greater the difficulty in mining bitcoin becomes → the more it costs (in electricity) to mine bitcoin.
The difficulty usually increases as the price of Bitcoin rises, as more and more miners fire up their computers in an attempt to earn more BTC.
But what happens if the difficulty of mining increases (making mining more expensive) while the price of bitcoin falls?
Normally, many miners will shut down their computers and wait for things to get easier (and therefore more profitable).
The strange thing is that the mining difficulty has increased at the moment, while the price of Bitcoin has fallen.
…but miners don’t shut down their machines – in fact, they try to mine/accumulate as much BTC as humanly possible.
So what does that indicate?
These miners believe that Bitcoin is undervalued and will rise sooner or later.
And they put their electricity bills (money) where their mouth is.
That’s a great sign!
