According to BlockBeats, Ki Young Ju, the founder and CEO of CryptoQuant, announced on social media on June 29 that the hash price of Bitcoin has reached a historic low. This has led to many mining companies slowing down their investments in mining machines, with some firms turning to other Proof of Work (PoW) currencies to hedge against market uncertainty.
The term 'hash price' was coined by Bitcoin mining service company Luxor. It refers to the expected value that can be generated per day per 1 PH/second or 1 TH/second of computing power. This metric quantifies the profit that miners can expect from a specific amount of computing power. The drop in hash price indicates a decrease in the profitability of Bitcoin mining, which has led to a slowdown in investment by mining companies.
The shift of some companies towards other PoW currencies is a strategy to hedge against the uncertainty in the Bitcoin market. This move could potentially diversify their investments and reduce the risk associated with the volatility of a single cryptocurrency. However, the overall impact of this shift on the Bitcoin market and the cryptocurrency industry as a whole remains to be seen.
