3 reasons why the price of Bitcoin Standard Hashrate (BTCST) has increased by 50%
China’s ongoing crackdown on Bitcoin (BTC) mining has resulted in a mass relocation of mining operations out of the country and a drop in the Bitcoin network’s hash rate by more than 50% from an all-time high of 197.9 exahash per. performed in second place (ehash / s) on April 15th to a current rate of 97 ehash / s.
One token that has been particularly hard hit by the drop in hash rate is the Bitcoin Standard Hash Token (BTCST), a project that secures Bitcoin hashes, with each token representing 0.1 TH / s of power.
Data from Cointelegraph Markets Pro and TradingView show that BTCST is showing signs of recovery recently after its price rose 57% from a low of $ 13.57 on July 18 to an intraday high of $ 27.38 on July 19 is when the bitcoin hash rate started to stabilize near 100 ehash / s.
The three reasons for the recent surge in BTCST are higher revenues due to the decline in the Bitcoin network’s hashrate, the ability to use BTCST for rewards, and an active community governance system that can offset the losses from providers for the ecosystem.
Bitcoin’s hash rate reverses the process
While the decline in the BTC hash rate is viewed as negative, the BTCST ecosystem is actually benefiting as the reduction in mining difficulty translates into higher earnings per token.
Since each token represents 0.1 TH / s Bitcoin mining power, the monetization of each token has increased 34% due to the decrease in the overall hash, offering higher rewards to those who participate in the ecosystem.
During the whole #Bitcoin The hashrate has dropped significantly in the last few weeks, the Standard Hashrate Group has maintained a stable hashrate of 150 petahashes.
– BTCST (@ BTCST2020) 4th July 2021
Investors can earn BTC, BTCST and DOGE
The second reason for the growth of BTCST is that there are more and more opportunities to benefit from using or providing liquidity.
As seen in the image above, BTCST holders now have the option to use their tokens to earn rewards that are paid out in BTCB, a packaged version of BTC on Binance Smart Chain (BSC), or the original BTCST report from Token.
The platform also offers options to wager or earn Dogecoin (DOGE), shown above as DOGE or Tau DOGE (τDOGE), but at the time of writing the APY on offer is listed at 0%.
connected: Malaysia is literally wiping out thousands of illegal Bitcoin miners
Admin voting helps users make up for losses
The third reason for BTCST’s recent strength is the recent adoption of STP 14, a one-time compensation scheme for liquidity providers who have suffered losses due to the recent recovery facility.
The #BTCST The community has adopted STP 14: Liquidity Provider One Time Compensation Program τLiquid Asset!
Liquidity providers for swaps are united like partners @PancakeSwap those affected by the rebase recovery will receive a one-time compensation equal to the ship’s ownership and the amount affected.
– BTCST (@ BTCST2020) July 2, 2021
Tau assets on the network include τBitcoin and τDOGE and they are mainly used as staking tokens to pay rewards in τDOGE.
Adoption of a new governance proposal suggests that the project is trying to respond to negative developments and the loss of user funds in the ecosystem, but it is not yet clear whether the current rally will gain momentum or not.