While the owners of Bitcoin and other Crypto currencies still await the next strong upward movement, if it comes at all, it is already debating what will actually contribute and will be a catalyst for the new take-off.
The dispute, however, this time with the Crypto Bulls is not related to institutional acceptance of the Crypt or the effectiveness of Blockhain technology or regulations. The graph shows a comparison with the Bitcoin price and the increase in mining difficulty. The difficulty in this case becomes negative because the difficulty that is the mathematical goal set by the protocol becomes higher than the chance chance a "miner" has to solve the complex problems and confirm a Blockchain transaction.
Keeping track of the rising difficulty of mining becomes an important indicator because it will give us an idea of when mining will reach its peak and we will begin to observe an outflow of miners from the net. This outflow is an indication that a new rally in Bitcoin prices is due, but not necessarily immediately due to the miners leaving the network. Historical cycles indicate that a 6 to 12 month period of negative to zero growth will be needed in the difficulty of raising prices.
However, the difficulty, which is negative for the second time this year and Bitcoin's price is at a 10-month low in the current bear market, determined by the 20 per cent decline in its historic peak, those who have Crypt tremble in anticipation of the new cycle.
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