Bitcoin price continues its upward trend, reaching a new six-month high on Sunday and crossing the 5,800 USD threshold. According to traders, the cryptocurrency movement is due to technical effects, and there are no news that could catalyze the increase in value.
At 09:14 am.m ET the price of the Bitcoin reached 5,802 USD. So the digital money appreciation from the beginning of the year reaches over 55%.
The other leading cryptocurrencies are also influenced by the Bitcoin and are trading with increases. The Ethereum rose by 5.55% to 167.10 USD, while Litecoin added even 8.7% to 78.75 USD.
The XRP appreciates more moderately by 2.3% to 0.3139 USD.
The Bitcoin hash rate hit record highs
On May 2, Bitcoin’s hash rate climbed to its highest level since the end of October 2018, with BTC spotting 5,800 USD.
Blockchain.com data shows Bitcoin’s hash speed, the computing power responsible for network security, climbed to 58 quintillions hash per second. This figure represents the highest value since the end of October 2018 and the fourth highest recorded in the network.
The increase in the hash rate indicates that more nodes are active in the network. With more nodes, there is more security for the network.
Since the beginning of the year, the Bitcoin network hash rate has been steadily increasing. In December 2018, the indicator declined by about 45% after massive nodal exclusion after nearly a 50% fall in prices since mid-November.
Increasing difficulties in mining – the power required for a new block – must rise with the hash hikes. Difficulty acts as a balancing parameter in the network, adding another layer of security.
In 2019, the difficulty progression was a recurring series of climbs and plateaus, as more miners joined after the mini-capitulation at the end of 2018. The difficulty is currently at the same level as the end of August 2018, when the Bitcoin traded at around 7,000 USD.
Bitcoin ended April 2019 with 30% gains, despite a 400 USD drop after the Tether/Bitfinex scandal. Currently, Bitcoin has grown by more than 57% since the beginning of 2019.
Warren Buffett called the Bitcoin a “gambling device”
The Bitcoin shows sustainability, increasing its value from 3,736 USD at the beginning of the year, but the critics still determine the cryptocurrency and digital assets as terrible investments.
The billionaire investor, Warren Buffett, who once referred to Bitcoin as a “rat poison” and called the proponents of the asset “misguided”, warns people to stay away from the digital money.
Speaking at Berkshire Hathaway’s annual meeting at CHI Health Center in Omaha, Nebraska on Saturday, Buffett said the Bitcoin “just sits there” and does nothing. He calls it a gambling device.
“It doesn’t do anything. It just sits there. It’s like a seashell or something, and that is not an investment to me. It’s a gambling device”, said Warren Buffett. “There’s been a lot of frauds connected with it. There’s been disappearances, so there’s a lot lost on it. Bitcoin hasn’t produced anything”, added he.
While Buffett may boast a storied investment career, the Berkshire Hathaway boss has often missed the boat when it comes to technology. Thus, it is unsurprising to see him join the “blockchain not Bitcoin” bandwagon.
According to Buffett, “blockchain is big… it doesn’t need Bitcoin”.
The above comment is unsurprising coming from someone who initially dismissed companies like Amazon and Apple. Also, Buffett is repeating the incorrect assertion that blockchain is the support system for Bitcoin.