Bitcoin is Undervalued
Here we look at some interesting charts
It has occurred to us that many of our subscribers, while interested in Bitcoin, are unlikely to be dedicating multiple hours a day to Bitcoin research in a futile attempt to become omniscient 😝
We are constantly learning and ferreting out information, trying to prove ourselves wrong. So far, this process has only led to our conviction in Bitcoin growing stronger, which is why we keep publishing this newsletter.
Let’s look at some charts.
Hash Rate
Bitcoins Hash Rate refers to the amount of computing and process power being contributed to the network through mining’. Bitcoin Mining is a vital process that keeps the digital currency’s network maintained. This happens via a mammoth global network of mining machines (powerful computers built for this task). These machines mine bitcoins by solving complex mathematical computations that verify Bitcoin transactions.
Looking at the above chart you can see the China Banned Bitcoin mining episode in 2021 which dropped the hash rate of the network. We then saw an impressive rebound of the hash rate as mining equipment in China was deployed worldwide. Mining Bitcoin becomes easier when the hash rate is lower which incentivises more miners to join the network. The USA (namely Texas) started investing in mining equipment and the infrastructure required to support the network.
Even in Feb 2022, when the “price” is below All Time Highs and Governments like Canada and US are talking about regulating or “banning” crypto, the Bitcoin network is breaking out and growing. It is becoming more indestructible and powerful as a decentralised network of Trust
The Wealth Gap opinion: NOT PRICED IN YET