Bitcoin mining has a long way to go before it can be considered dead. Despite the low price, experts say miners are in it for the long haul as they have faith that bitcoin will rise again and become more profitable.
The “fidelity digital assets report 2022” is a report from Fidelity Investments. The report predicts that the Bitcoin cycle will not be over for some time, and miners are in it for the long haul.
The cryptocurrency division of Fidelity Investments, which oversees $4.2 trillion in assets, provided its “two sats” on the direction of the digital assets market. The main conclusions focused on the actions of miners and the adoption of the Bitcoin (BTC) network.
The organization provided some insights on the BTC mining industry in the annual report that was published last week:
The present bitcoin cycle is far from done, and these miners are making investments for the long term, since they have the greatest financial incentive to predict the acceptance and value of BTC.
According to the research, the hash rate recovery in 2021 “was genuinely astonishing,” especially in light of China’s decision to outlaw Bitcoin in the same year. Because BTC’s hash power is “more broadly dispersed throughout the globe,” the hash rate has recovered after the prohibition, demonstrating that miners are focused on long-term earnings.
The assertions were consistent with the recent selling activity of miners. Key on-chain metrics demonstrate that Bitcoin miners are accumulating “massive” amounts of BTC and have no intention of selling.
Related: A Fidelity executive claims that $40K is a “pivotal support” since Bitcoin is “technically oversold.”
Fidelity made some intriguing forecasts about additional nation-states recognizing BTC as legal cash in regards to orange-piling whole nations:
The nations that secure some bitcoin now will be better placed competitively than their counterparts if bitcoin adoption rises, according to the extremely high-stakes game theory that is at work in this situation. Therefore, it shouldn’t come as a surprise if more sovereign nation-states buy bitcoin in 2022, or even if a central bank does.
As of late 2022, according to a former Tonga MP, the nation could adopt BTC.
A higher proportion of the hundreds of billions in conventional assets will enter the digital asset ecosystem as a result of improved products and more regulation, which will essentially open up the crypto market. It might prolong the cycle and push BTC to new highs when coupled with miners’ idleness.
The “fidelity bitcoin prediction chart” is a report from Fidelity on the future of Bitcoin. It predicts that the cycle is far from over and miners are in it for the long haul.
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