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Investors Are Bullish On Bitcoin Mining: Possible Foreshadowing of BTC Price

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Through 2018, bitcoin mining has seen an exponential increase in competitiveness.

Mining difficulty (competitiveness) has seen a parabolic curve upwards this year. This indicates exponential investment of computing power into bitcoin mining, another form of demand. During the same time period, there has been a decrease in bitcoin price.

However, the increased competitiveness of bitcoin mining may be an indication that investors are quietly acquiring bitcoin bullishly through mining (while simultaneously bear trading) in order to accumulate more before pumping price on the open market.

The unprecedented increase has also caused the cost to acquire new bitcoin through mining to increase, increasing costs.

Higher demand, and higher costs, logically indicate we will soon see a higher price of bitcoin, as well as other proof of work cryptocurrencies.

Furthermore, bitcoin has historically seen an increase in price over the years a bitcoin mining blocks rewards have halved. If the pattern continues, the price of bitcoin may reach hundreds of thousands of dollars, if not millions of dollar per BTC.

Hopefully for HODLers, the same upwards curve that has been seen for mining difficulty will soon be reflected on bitcoin prices. Many speculate that the reversal has already begun, both for bitcoin and altcoins.

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