Sofia
Sat Jul 13 2024
|
7 answers
1936
Why does the concentration of miners go up when bitcoin price drops?
Could you elaborate on the apparent paradox of why the concentration of miners increases when the price of Bitcoin drops? It seems counterintuitive that as the value of the asset miners are seeking to acquire declines, their numbers would actually surge. Could this be a result of miners anticipating a rebound in the market and capitalizing on lower operating costs? Or are there other factors, such as mining difficulty adjustments or a shift in the distribution of mining power, that contribute to this trend? Understanding this dynamic is crucial for those investing in or analyzing the cryptocurrency market.
