In recent weeks, many observers have reported that, based on the cost of energy, a price drop of up to 7 thousand dollars would have led bitcoin miners to operate at a loss, with a consequent collapse of the hash rate; meanwhile, the rainy season in China has ended, the cost of energy has started to rise again and the Chinese mines close their doors waiting for the next season, when hydroelectric power will return to be abundant and at reasonable prices. These two facts, taken together, should have caused a collapse of the hash rate, but this did not happen; according to the data released by the main analysis companies, the computing power expressed by the network remains at historical highs; What's going on? Simple, it happens that many are investing in the mining industry, thus covering the fall of the Chinese hash rate, while all the others are holding up and continue to undermine even at a loss.

The reason, as anyone can understand, is the imminent halving that miners hope will once again throw the price sky-high, as has always been the case up to now; the miners, in other words, believe they can sell the accumulated stocks at this time of price weakness in the coming months, still managing to secure a good profit margin. If, however, the halving should not contribute to a rise in prices, the risk is that many miners go heavily at a loss, the strategy they are adopting, in fact, is very risky; undermining at a loss means taking on production costs and, as happened in 2018, the risk is that they end up in the air precisely because of the high production costs, which however must continue to be met. On the other hand, if the hash rate collapsed in this phase of price weakness, the risk is that a knock-on effect will be generated, in which traders who use their computing power as a fundamental metric of their operations will rush to sell, triggering stop losses and generating panic selling.