• Coins
    • Bitcoin
    • Dogecoin
    • Ethereum
    • Litecoin
    • Ripple
    • Tron
    • NFT
  • Cryptonews
  • Blockchain
  • Metaverse
  • Regulation
  • Market Cap
What's Hot

Why Ethereum Could Present Opportunity If It Drops Below $1,600

02/09/2023

French luxury house Hermès Wins NFT Trademark Lawsuit

02/09/2023

Nokia Leading the Way in 5G and Metaverse Industries

02/09/2023

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

Facebook Twitter Instagram
Trending
  • Why Ethereum Could Present Opportunity If It Drops Below $1,600
  • French luxury house Hermès Wins NFT Trademark Lawsuit
  • Nokia Leading the Way in 5G and Metaverse Industries
  • Cardano Founder Wades Into The Staking Debate, Points Out Problem In Ethereum
  • Here’s a list of countries that love the metaverse the most
  • SBF’s lawyers move to block release of bail guarantors’ identities
  • Ethereum Burning Reaches New High, Is ETH Warming Up For Another Rally?
  • Bitcoin Metric Turns Bullish At $23k And Forecasts More Profits
Facebook Twitter Instagram
Center Crypto NewsCenter Crypto News
Demo
  • Coins
    1. Bitcoin
    2. Dogecoin
    3. Ethereum
    4. Litecoin
    5. Ripple
    6. Tron
    7. NFT
    8. View All

    Bitcoin Metric Turns Bullish At $23k And Forecasts More Profits

    02/09/2023

    Crypto Market Still Reeling As Bitcoin’s Break Above $24,000 Triggers Liquidations

    02/02/2023

    Bitcoin Short-Term Holder Profit Taking Reaches Levels Not Seen Since Nov. 2021

    02/02/2023

    Can Bitcoin (BTC) continue the bullish rally for the entire 2023?

    02/02/2023

    Will DOGE reach $1 in 2023?

    01/31/2023

    Will Dogecoin (DOGE) break the long-term support of $0.05?

    12/19/2022

    Dogecoin surges 9%; Will DOGE outperform other altcoins?

    11/29/2022

    Dogecoin (DOGE) takes support from the 200 EMA curve!

    11/21/2022

    Why Ethereum Could Present Opportunity If It Drops Below $1,600

    02/09/2023

    Cardano Founder Wades Into The Staking Debate, Points Out Problem In Ethereum

    02/09/2023

    Ethereum Burning Reaches New High, Is ETH Warming Up For Another Rally?

    02/09/2023

    This Mysterious Fund Could Be Behind The 40% Surge in Ethereum Prices

    02/09/2023

    LTC is all set to surpass the $100 mark!

    01/31/2023

    Can Litecoin (LTC) surpass the $82 mark in the third attempt?

    01/12/2023

    Litecoin (LTC) outperforms its peers and showcases huge potential!

    01/04/2023

    Litecoin lacks a buying spree; Support remains relatively stronger

    12/08/2022

    SEC settles on security claim in LBRY case; community calls it a big win for crypto

    01/31/2023

    New Ripple president says her job is to continue to scale amid crypto winter

    01/27/2023

    Circle, Ripple reflect on Davos 2023

    01/26/2023

    Ripple, Binance impersonators target XRP holders via fake staking program

    01/25/2023

    Is it time for a long position in TRX?

    02/01/2023

    TRON spikes 5% today: Can TRX breakout continue?

    01/09/2023

    TRON is likely to regain its previous support of $0.06

    12/15/2022

    TRON (TRX) price plunge may be on the horizon

    12/08/2022

    French luxury house Hermès Wins NFT Trademark Lawsuit

    02/09/2023

    NBA Star NFT Sells For Record-Breaking Price On Sorare

    02/08/2023

    DOOM Game Now Available On Bitcoin; Here’s How You Can Play

    02/08/2023

    You Can’t Miss These Top 5 NFT Drops In February 2023

    02/06/2023

    Why Ethereum Could Present Opportunity If It Drops Below $1,600

    02/09/2023

    French luxury house Hermès Wins NFT Trademark Lawsuit

    02/09/2023

    Nokia Leading the Way in 5G and Metaverse Industries

    02/09/2023

    Cardano Founder Wades Into The Staking Debate, Points Out Problem In Ethereum

    02/09/2023
  • Cryptonews

    Orbeon Protocol soars; Shiba Inu recovers on Shibarium launch

    02/05/2023

    Aptos soars, and Orbeon Protocol is expected for 6000% gains

    02/04/2023

    Cosmos, Chainlink, and Orbeon Protocol

    02/03/2023

    Binance Coin, Helium, and Orbeon Protocol lead market gains

    02/03/2023

    Crypto goes without any mention in the 2023 Union Budget

    02/02/2023
  • Blockchain

    Lodestar announces the mega launch of v1.4.0

    02/03/2023

    KardiaChain partners with Vibranium Audits & revolutionizes dApp

    02/02/2023

    Djed goes live on Mainnet, beginning a new era of stablecoins

    02/01/2023

    Aave deploys V3 on Ethereum mainnet to mitigate user risk

    01/30/2023

    COTI makes an invaluable contribution to the boosting of Djed

    01/30/2023
  • Metaverse

    Nokia Leading the Way in 5G and Metaverse Industries

    02/09/2023

    Here’s a list of countries that love the metaverse the most

    02/09/2023

    Exploring the Metaverse’s potential with RFOX: Challenges in implementing AI and NFTs in VR

    02/09/2023

    Hermès wins case against Mason Rothschild’s Metabirkins

    02/08/2023

    Saudi Arabia partners with The Sandbox for future metaverse plans

    02/08/2023
  • Regulation

    SBF’s lawyers move to block release of bail guarantors’ identities

    02/09/2023

    Hong Kong securities regulator adds crypto personnel for industry supervision

    02/07/2023

    5 biggest economic bubbles in history

    02/05/2023

    Voyager victim calls for trustee to seize control of the estate

    02/03/2023

    US lawmakers renew request for answers from Silvergate on FTX: Report

    02/01/2023
  • Market Cap
Center Crypto NewsCenter Crypto News
Home»Coins»Bitcoin»This Level Could Be Crucial For Bitcoin, Pricing Model Suggests
Bitcoin

This Level Could Be Crucial For Bitcoin, Pricing Model Suggests

By 01/30/2023No Comments0 Views
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email


The Bitcoin difficulty per issuance, a proof-of-work (PoW) pricing model, might provide hints about the following crucial level BTC would have to clear.

Bitcoin Approaches Difficulty Per Issuance Model 2.0 Level

As pointed out by an analyst on Twitter, the BTC price is almost double the cost of production now. The “difficulty per issuance” is a Bitcoin PoW pricing model based on two metrics: the mining difficulty and the issuance.

The mining difficulty is a mechanism of the Bitcoin network that sets the computing difficulty for miners to mint new coins and insert blocks on the chain. The difficulty exists because the BTC network was configured to keep its supply production around a constant value.

Whenever the Bitcoin hashrate, a measure of the total amount of computing power connected to the blockchain, changes its value, the rate at which miners produce new blocks also fluctuates. As the network is set to prevent this, it adjusts the difficulty exactly as much as is needed to counter these fluctuations.

Because the difficulty is dependent on the hashrate in this way, it encapsulates all the mining-related expenses that miners incur and can thus be used to estimate production costs.

The difficulty per issuance model is based on this idea. To calculate the cost of 1 BTC, the model divides the difficulty term with the “issuance,” the total amount of new coins added to the circulating supply.

Now, here is a chart that shows the three essential levels of this model and where Bitcoin stands in relation to them:

The three difficulty per issuance pricing levels | Source: @paulewaulpaul on Twitter

As displayed in the above graph, the Bitcoin price was under the difficulty per issuance 1.41 level a while back (the middle line). This level represents a kind of average cost of production for the BTC miners.

The bottom line gives a lower bound estimation for the cost of production, while the top line gives an upper bound. The chart shows that BTC never touched the lower bound in this cycle.

With the latest rally, BTC has broken above the 1.41 level and is now approaching the 2.0 level (the upper bound). In the past, Bitcoin has remained between these two levels for extended periods during a few different instances.

Usually, bull rallies have taken place after Bitcoin has successfully broken out of this zone in the past. So, if the crypto’s price manages to go beyond this level, it might be a positive sign for investors.

However, the coin being rejected from the difficulty per issuance 2.0 level is just as real a possibility as there is historical precedence for it. Now it remains to be seen how the price will react once it retests this line (assuming it even does one in this rally).

BTC Price

At the time of writing, Bitcoin is trading around $23,100, up 1% in the last week.

Bitcoin Price Chart

Looks like BTC hasn't moved much recently | Source: BTCUSD on TradingView

Featured image from Brian Wangenheim on Unsplash.com, charts from TradingView.com, Glassnode.com

Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

Related Posts

Bitcoin Metric Turns Bullish At $23k And Forecasts More Profits

02/09/2023

Crypto Market Still Reeling As Bitcoin’s Break Above $24,000 Triggers Liquidations

02/02/2023

Bitcoin Short-Term Holder Profit Taking Reaches Levels Not Seen Since Nov. 2021

02/02/2023

Leave A Reply Cancel Reply

Top Posts
Bitcoin

Bitcoin Metric Turns Bullish At $23k And Forecasts More Profits

02/09/2023
Cryptonews

Orbeon Protocol soars; Shiba Inu recovers on Shibarium launch

02/05/2023
Cryptonews

Aptos soars, and Orbeon Protocol is expected for 6000% gains

02/04/2023

Subscribe to Updates

Get the latest Hot news from Center Crypto about Bitcoin, Altcoin, NFT, Market Updates Etc

Advertisement
Demo
Stay In Touch
  • Facebook
  • Twitter
  • Pinterest
  • Instagram
  • YouTube
  • Vimeo

Your source for the serious news. This website is crafted specifically to for crazy and hot cryptonews. Visit our main page for more tons of news.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest YouTube
Top Insights

Why Ethereum Could Present Opportunity If It Drops Below $1,600

02/09/2023

French luxury house Hermès Wins NFT Trademark Lawsuit

02/09/2023

Nokia Leading the Way in 5G and Metaverse Industries

02/09/2023
Get Informed

Subscribe to Updates

Get the latest Hot news from Center Crypto about Bitcoin, Altcoin, NFT, Market Updates Etc

© 2023 ThemeSphere. Designed by ThemeSphere.
  • Terms & Conditions
  • Contact
  • Privacy Policy
  • DMCA

Type above and press Enter to search. Press Esc to cancel.