According to Trustnodes reported on January 10, Bitcoin's hashrate (hash rate) broke a new high again, rising to 120 EH / s for the first time, a three-fold increase from 40EH / s in February 2019.
Image source: pixabay
This growth is partly due to the iterative progress of ASIC miners, but from the perspective of the increase, it also shows that the demand for Bitcoin is growing.
Bitcoin's hashrate continues to rise ｜ January 2020 screenshot
The demand may even come from some isolated governments, because they figured out that the easiest way to get Bitcoin is to mine Bitcoin so that they can bypass the banking system.
If demand comes from new miners who intend to use Bitcoin instead of selling it, then this may affect the supply of Bitcoin in the price market.
This is because industrialized miners tend to regard mining and selling as a simple operation, that is, to use bitcoin revenue to pay costs and obtain some profits, thereby increasing downward pressure on the market in the process.
Although mining miners based on demand has a cost, but because they may only need or want Bitcoin, they squeeze some industrial miners during the mining process, which may generate upward momentum for the market.
This is happening in certain geopolitical tensions and at a point where the World Bank warns of debt runaway. They said:
"There have been three waves of debt accumulation in history: 1970-1989, 1990-2001, and 2002-09. Since 2010, another wave is forming.
In 2018, global debt as a percentage of global GDP reached a record 230%, and emerging and developing economies (EMDEs0 debt as a percentage of GDP reached a historical high of nearly 170%, an increase of 54% from 2010).
Compared with the previous three waves, the debt accumulation of EMDEs in the fourth wave is larger, faster and wider. "
Global debt map for January 2020
High levels of debt that are accumulating around the world may lead to "a large-scale financial crisis that coincides with a global recession."
This is because, to a certain extent, people or governments have borrowed too much money so that they are unable to repay it, leading to large-scale defaults and large-scale spending of money due to large amounts of money printed.
At that time, due to the decrease in capital flow and economic activity, the left believed that the government should step in and take measures to stimulate the economy, while the right believed that companies or the public should readjust bad economic investments from the bottom to boost the economy.
The problem for the left is that interest rates are very low or even negative, and the average inflation rate in developing economies has fallen from 25% in the 1990s to about 3% now. The problem for the right is that without some buffers, rebellions could occur, exacerbating the crisis.
The solution is not simple, but Bitcoin is a potential way out because its total supply is fixed.