Bitcoin is bullish in the long-term run

The reason for this lies in the various opportunities for participation, since according to the data of Coinmarketrate.com when staking, the person who owns the largest number of coins always has the right to add the next block of transactions. Those who have a large position in Ethereum and contribute to staking, on average, are responsible for confirming transactions more often. He receives a reward every time, and therefore can expand his position.

So, the fear is that Ethereum may be under the control of several large investors. Currently, these are Coinbase and the Lido betting pool, both of which hold a large amount of Ethereum. This criticism is justified, but it is far from the collapse of the Ethereum network. In the end, the moment must first be reached at which the control that causes concern is carried out. Moreover, such mechanisms as cost reduction are used to counteract such monopolies.

The mining industry remains irreplaceable

So, if Ethereum has yet to prove the impossibility of sensitive interference in its blockchain in the coming years, then Bitcoin remains extremely secure. Although mining still requires more resources, it can also ensure that no one can fake it. Theoretically, such an attacker would need the lion’s share of the resources that the Bitcoin network already consumes.

Bitcoin has no fancy NFTs, no AMM protocols, and transactions on the chain are frankly miserable compared to other cryptocurrencies. The main feature is security, which is guaranteed, among other things, by proof of the miners’ work.

That is why Bitcoin is now worth a little more than $20,000, and Ethereum is only $1,450. But even more important is the fact that the debate about the environment, which, it would seem, should go to the detriment of Bitcoin, does not have a noticeable impact. This is due to the fact that in September the hashrate briefly rose to a record high of 230 EH/s. Its level has been steadily rising since the collapse in May 2021, and currently the average is about 267 EH/s.

Hashrate chart for Bitcoin network. Source: coinwarz.com

The price follows the hashrate

This effect is considered controversial, since it can also be argued that the hashrate follows the price. There were also stages when the hash was rapidly disappearing, and the price of Bitcoin at the same time completely collapsed.

Thus, it is not a rule of thumb that predicts immediate results in the present, but rather gets to the heart of a long-term trend. While the Bitcoin network is growing and thriving, miners are reinvesting and, obviously, can make a profit.

Therefore, from a fundamental point of view, the growth of the hashrate is usually considered a “bullish” indicator for the coming years, since it is considered as a guarantee of the security and growth of the Bitcoin network.