Bitcoin miners are already losing their ‘profitability’

Mining or searching for bitcoins and other cryptocurrencies using sophisticated computer equipment has become increasingly unprofitable as their price has fallen sharply in recent months. Cryptocurrency mining is a business in which computing power (or “hashing”) is used to process transactions and earn rewards, in this case, cryptocurrency.

In other words, it is the process of adding new transaction records as blocks to the blockchain or “blockchain”.

Like any business, you need to invest financially, manage profits, and manage expenses generated to keep it going.

Variables such as the price of cryptocurrency in the market (up and down), the difficulty of mining, the price of “hardware” for mining and the cost of services, such as the Internet and the price of electricity, should be evaluated.

main price

Why is this bitcoin drop so important in this regard? Economist and token expert Alex de Vries conducted a study in which he asserted that if the price drops below $25,200 for an extended period, the average cost of electricity required to maintain mining equipment and manage a “Blockchain” is close to what they earn from mining and managing new bitcoins.

Until the close of this note, the price of the major cryptocurrency was at $21,700, which is 3.6% below the values ​​seen in the last 24 hours, and is expected to continue declining due to market fear. .

In simpler terms, many miners are already operating at a loss and in the absence of profits, many may consider shutting down operations and the Bitcoin network will not be able to sustain the 180 TWh of electricity consumption it needs.

“We’ve reached price levels where things are getting tough for miners,” Friss explains. “Not only will it limit his options for growth further, but it will really impact day-to-day operations,” ComputerHoy reports.

In fact, due to the sharp drop in bitcoin prices in recent months and the rest of the market, the “hash rate,” the network’s processing power, has fallen by nearly 10% in just four days, according to reports. CryptoNews website.

According to mining analytics firm Braiins, the total computing power with which transactions are processed on the decentralized network has decreased by 9.9% since June 9, when the cryptocurrency was hovering around $30.00.

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Tags:

  • Bitcoin
  • Cryptocurrency
  • mind
  • Cost-effectiveness
  • prices drop

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