I discovered some interesting things while reviewing my Bitcoin mining data for the month of March.
It appears that the Total Computation Power on the Bitminter network is continuing to increase but the number of workers and users has decreased. Specifically:
1. Total Computational Power – 03.04.14: 423.18 Thps – 03.31.14: 563.87 Thps
2. Workers – 03.04.14: 9,428 – 03.31.14: 8,388
3. Users – 03.04.14: 7,665 – 03.31.14: 6,695
I wouldn’t call this a trend yet but I find it fascinating nonetheless and something to keep my eye on. I have only been collecting data for the past few months and would have to review the past months for detailed insights. However, the past data as I recall has historically (at least prior to March 2014) been trending upwards in terms of computational power, workers and users.
Here is information on the market value of Bitcoin:
1. BTC Value 03.04.14: $659.17
2. BTC Value 03.31.14: $463.19
3. Change in Value (March 2014): ($195.98)
So we have an increase of 140.69 Thps in terms of computational power, a decrease of 1,040 workers, 970 fewer users and decrease in Bitcoin value of $195.98 within a month.
My assumption is that Bitcoin is presently in a weeding out stage where the serious miners are increasing their mining investment (thus the increase in computational power) and the miners who cannot keep up with the capital investment or are not getting rich quick are moving on to other things. This could explain the large increase in computational power with the corresponding decrease in users and workers.
The increased government involvement may also be scaring away some of the early miners and novices who may believe the time has passed for the early money and may believe that increased government regulation may usher in increased costs and more work for less profits.
Of course this could be a phenomenon strictly contained to the Bitminter mining pool. I would be interested to hear if others are seeing similar data in other Bitcoin mining networks.