A correlation between network complexity and bit cost is found

Based on the DataLight analytical platform, researchers have found a certain correlation between the difficulty of mining Bitcoin and its growth. Thus, in 2019, a 3-fold increase in complexity contributed to the rapid rise in value. Since the very beginning of this year, the mining complexity has increased by as much as 33 percent, and the value of bitcoin has risen by 100 percent. There are 3 main hypotheses regarding the correlation between bitcoin quotes and hashrate/difficulty. According to the first one, both hashrate and complexity increase immediately after the price increases, as more users want to get their reward. According to another hypothesis, the cost directly follows the hashing power and complexity. This is the opinion of a famous trader named Max Kaiser. According to the latter theory, the relationship between hashrate/complexity and the price of bitcoin can only be determined by a power law. According to the apologists of this hypothesis, it has become possible to develop a formula necessary to determine the value of bitcoin if you track the chronology of the ratio of these indicators. Regardless of the correctness of this or that hypothesis, we should agree that there is a certain correlation, and investors should take into account changes in the complexity of mining when making decisions.