That is a headline from earlier this morning on the 26th of March 2020, and that is exactly what happened. The Bitcoin mining difficulty chart is showing us a historic drop. We have never seen such a drop in percentages, but also in absolute numbers. We have never witnessed such a drop in the Bitcoin mining difficulty, and that is due to the lack of hash rate in the network. Right now is this dangerous for Bitcoin or how dangerous is this for a Bitcoin and also the current situation? As far as the Bitcoin price is concerned, all that and more in this episode and now let's jump right into it, starting off with the price of Bitcoin. There is not all too much to say on the weekly chart, we're still trading clearly above the 200 weekly moving average and the price of Bitcoin is actually going sideways upwards. I would say right now: some people are already talking about a potential of an ascending triangle and a potential breakout. I would say it is way too early to call for that, and also the correlation between traditional markets and Bitcoin are still too strong right now. I have not seen a true evidence that the decoupling already happened, so we still have a close look at gold, which is the top chart in here then Bitcoin, which is the middle chart and also the futures for the SampP 500. And of course, you can see that there is still a strong correlation by the way guys I have this information firsthand.
It is very hard right now to organize physical gold and maybe gold ETFs paper. Gold is in trouble right now, so for all those people out there who want to speculate on gold well either you could do that on FEM X with derivatives. Of course you can do that, but in my personal opinion it is way way better to actually own physical gold. If you are interested in gold as an investment, if you're just speculating on it. Of course you can use derivatives, but if you want a really invest in gold, I personally recommend physical gold and then you know exactly what you have. That is my personal advice in here. So the price of Bitcoin, still in that face in here where it goes slowly upwards sideways everything still all right, waiting for a break out to either side for more price action. I know some people are already get bored, but what we have to talk about today is way more important and that are Bitcoin fundamentals and one of the most important fundamentals is the hash rate and also obviously the difficulty which is correlated to that. So what we're? Looking at in here is this headline. I already said that in the intro bitcoins mining difficulty is about to see a historic drop, and that is exactly what happened now. Why is that? Well, you probably already figured why, mainly because the price of Bitcoin dropped massively and that left some miners and dust being unprofitable, so they have to shut down their machines now.
The reason why we see different numbers in hash rate here – blockchain comm, for example, versus Bitcoin in for our comm – is that those arches estimates based on how long it takes to find the next block. There is no measurement of how much effective hash powder is in the network. Those are just calculations assumptions of how much there is in the network. Here, for example, on Bitcoin info charts, we have a peak of 133 EXA hashes and here on blockchain calm. We have 136 EXA hashes well, that is actually quite accurate, but here the low right now from yesterday at only 75 EXA hashes and here back at Bitcoin info charts, 85, X's and currently 91 EXA hashes. So once again, this is just based on how long it takes to find blocks, and then they have their individual estimations about how much hash powder is in a network. But what we know for sure is – and it makes perfect sense, because the price of Bitcoin drop, so miners were getting left in the dust, so they had to shut down their machines. So obviously, without the difficulty adjustment – and this is what's so great about Bitcoin. Without the difficulty adjustment it took longer than 10 minutes in average to find Bitcoin blocks. Here, for example, I found a perfect example. Block number 620 2889 was found exactly at 1536 and then it took approximately two hours to find the next block with number 620 2890.
It took approximately two hours, as you can see in here, to find the next block, although the is that after 10 minutes, a new block should be found. Of course, this is post on distributed, so we're only expecting 10 minutes. It can take way longer, but it can also just take one second, for example, which is very rare by the way, but it can happen theoretically right, but what we have seen over here is the effect of hash rate going down, but this is what's so great About Bitcoin, the difficulty adjustment which we have seen today, which was a historical difficulty adjustment as far as percentage but also absolute ballots, are concerned, went back down from a difficulty of 16 point 5 T all the way down to 14 point 80. That is a difficulty adjustment to the downside of more than 10, but now why is this great and why don't? We have to be scared. Well, that actually means it is way easier right now for miners to mine fresh Bitcoin, to find those blocks who solve the mathematical problems that they have to solve. So that means that some miners who were unprofitable yesterday can actually come back into the network and mine again and if the hash rate is going up again then well, the next difficulty adjustment maybe will be again to the upside if the hash rate increases. If the block times are getting lower than ten minutes, this is why Bitcoin is so great or one of the reasons why bitcoin is so great.
Whatever happens, the network has already embedded a solution for it, and this is the perfect evidence. So do we have to be scared of a death spiral that we're never gon na reach the next block, or anything like that? No not at all, because what we can clearly see is that there are still many many miners left out there, especially those out of China, who are still mining profitable at the current price levels and I'm. Pretty sure, and from what I heard, the range right now is at approximately 3000 to 4000 US dollars where the last miner basically has to shut down, but on the way down when miners are shutting down their machines, approximately every two weeks or 2016 blocks the difficulty Adjustment happens so it's getting more profitable again so there's a higher incentive again for less profitable miners to come back to the network and support the network. So no, this is not dangerous for Bitcoin, at least not. Yet, although I mean the drop in hash rate in here, looks actually quite hairy and can look dangerous for people who are not educated about this. But we are currently back at levels where we were by the end of 2019, and I mean we're only three months in this year, so this is still perfectly fine, alright, and the last piece of this episode is something for all the experienced traders out there. I repeat only for the experienced traders out there for those who are interested in futures trading competition.
There will be a 1 million US dollar trading competition on balance similar to by bit, but a little bit different. Actually, for those people who are interested, there is a team Sonny decree. If you want to sign up, if you have never heard of bindings futures, make sure to check out the bindings futures tutorial, which is almost on 50000 views by now very very interesting for experienced traders out there I'm, currently not really actively training, bindings futures or on The bindings futures exchange – I personally still prefer Femme expose people are interested in that trading competition. You can sign up right now with the link down below for the futures exchange. The code is Sonny decree and there is also the tutorial popping up by my side. Right now, thank you guys very much for watching.