No new blockchain hype, but impending Miner death

While various crypto prices like Litecoin’s are slowly but surely recovering, analysts warn against expecting too much for the industry in the new year. In particular, a new hype should be avoided.

Good thing takes time – also with the success of the blockchain?

The fact that the warning of a new boom and hype surrounding blockchain technology is coming from Deutsche Bank, for example, may be dismissed with a wink. Large banks in particular have often smiled at the crypto trend since the beginning of Bitcoin. Nevertheless, Deutsche Bank analyst Jochen Möbert has pointed out that many blockchain and crypto projects would run aground shortly after the start. This is by no means an unjustified assessment.

Low courses deprive mining of its profitability

Möbert reckons in current interviews less with an acute hype of the blockchain than with a process that takes its time until the revolution has finally gained widespread acceptance. His “colleague” Salah-Eddine Bouhmidi, who works for the broker DailyFX, on the other hand, expresses quite different concerns. The expert said that there is a real threat of Miner’s death – if the prices for Ethereum, Bitcoin and all the other blockchain-based currencies cannot stabilise at a certain minimum level. In the case of the Bitcoin, it sees the price mark at around USD 6,000. Below this price, the financial commitment to mining with electricity and hardware costs is simply too high for many miners.

In the end, only a fraction of the miners and mining farms active today could remain. Many insiders have been arguing about whether a reduction in the number of mining participants in the market is negative without exception since the first massive price declines in recent months.