Home Uncategorized The profitability of bitcoin mining has collapsed by 80%

The profitability of bitcoin mining has collapsed by 80%

The profitability of bitcoin mining has collapsed by 80%

Bitcoin mining cash flow is down 80% from its peak in November 2021 to levels two years ago. Analysts at Arcane Research drew attention to this.

Experts noted that the latest generation ASIC miner Antminer S19 brings about $13,000 per BTC mined at a cost of electricity of $40 per MWh. Outdated Antminer S9 at the current price of cryptocurrencies work at a loss.

Public mining companies generally have access to lower power rates. In addition, their fleet of equipment consists of highly efficient devices, analysts noted.

Despite this, in May, miners sold 100% of the bitcoins mined in a month. Since the beginning of the year, they have been selling from 25% to 40% of the generated cryptocurrency.

According to Arcane Research experts, the pressure on the profitability of mining, in addition to falling prices, was exerted by an increase in the bitcoin hashrate and, accordingly, the complexity. Computing power has increased amid significant investment in new hardware.

On June 11th, the hashrate (smoothed by the 7-day moving average) peaked close to 231 EH/s, according to Glassnode. By June 21, the rate dropped sharply to 207 EH/s.

The drop in network capacity by 10% in a few days could be caused by the disconnection of devices that have ceased to be profitable.

In May, the income of miners of the first cryptocurrency decreased by 22% compared to April, to $906 million.

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Source: Cryptocurrency



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