Why has POC coin been rising (What is the prospect of POC coin in 2022)?

08/12/2023 01:50 • Blockchain Buzz • 91 views

Why has POC coin been rising? POC coin is one of the forked coins of Bitcoin. It incentivizes miners to participate in network mining and rewards transaction behavior through token issuance, while ensuring a certain level of anonymity. Currently, the project has two mechanisms: creating a new digital currency based on the Bitcoin algorithm, and using POC technology as a payment system based on underlying blockchain technology. These protocols were created by DApp development teams on Ethereum, and the Proof-of-Work consensus mechanism allows Bitcoin to become the first decentralized network. So why has POC coin been rising?

1. Reduction in Bitcoin block rewards leads to decreased supply. This means that when the price of Bitcoin is above 20,000, miners cannot obtain more BTC, causing them to sell off their holdings, resulting in greater price volatility. 2. Decreased transfer fees on the Bitcoin chain. 3. Decreased profit capabilities for miners. 4. Increased total network hash rate for Bitcoin. 5. Increased network difficulty for Bitcoin. 6. Significant increase in mining profits. 7. Increased transaction fee revenue for Bitcoin mining pools. Since August, Bitcoin has been consistently performing at a high level.

Every 2016 blocks on the Bitcoin network, a new block is generated, which gradually reduces the daily value of work output by miners. From December of last year to early January of this year, each node on average had to process more than 25 confirmations per transaction. However, now the cost of mining with 10 validators is approximately 0.009 ETH, which means that only mining facilities worth more than $500,000 can obtain profits from over 100 Bitcoins. As a result, miners spend about 200,000 RMB per year to purchase a thousand Antminer machines, which costs approximately $500. Although this model looks like a cryptocurrency game, it does not actually allow Bitcoin to fully function, but rather has become an important part of the entire cryptocurrency circle, as mining in different ways is not only beneficial to individuals, but also brings a huge driving force to the market.

In addition, there are two factors influencing the price trend of POC coin:

1. Continuous decrease in Bitcoin block rewards.

According to official Bitcoin announcements: “As Bitcoin mining becomes more and more popular, many new customers will invest their mining funds into the Bitcoin ecosystem.” In addition, according to CoinMarketCap data, the average daily global Bitcoin hash rate reached 155.6 EH/s in the second quarter of 2017, compared to 142.8 EH/s in the first quarter of 2019. It is expected that the Bitcoin hash rate may continue to decline in the coming quarters.

What is the prospect of POC coin in 2022?

According to coindesk, POC coin is expected to enter a major upward cycle this year. In the past 12 months, the price of PoC has risen from around $80 in June to a peak of around $400, although the increase has not been significant. Based on statistics, PoW tokens have reduced production by an average of 10% every four years since the beginning of 2019. The bull market in 2018 also had a negative impact on POC performance. However, currently, the market has a positive outlook for this asset and has certain expectations, and this state is expected to continue in the foreseeable future.

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Why has POC coin been rising (What is the prospect of POC coin in 2022)?

What is the prospect of POC coin in 2022?

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