If the mining it was a game, one might ask today if it’s still worth it. It is no longer the cabal unleashed by your critics that harms today mining of bitcoins, but the price of bitcoin itself. Dropped below $20,000 line, bitcoin puts hard test the profitability of industries mining of bitcoins.
The recent rout of cryptocurrencies has hit bitcoin miners hard as the prices of bitcoin and other cryptocurrencies have plummeted.
The drop in the price of BTC has led to a drop in miners’ income. In concrete terms, the profitability of the mining Bitcoin is now 75% below its November 2021 peak.
Several ASIC (Application Specific Integrated Circuit) machines have reached their negative profitability zone. These include the Antminer S11 and the AvalonMiner 921.
This decrease in profitability is mainly reflected in the price of hash rate, which is now at its lowest point since October 2020: $0.0950/TH/day. According to data from Blockchain.com, miners’ income has dropped from $22.5 million to $5 million.
As the value of bitcoin fell, so did the value of miner production. Miners therefore had to reduce production during the month. The bitcoin hash rate has consequently seen a decline of around 4% this week.
Stocks of companies falling mining
The net flow of bitcoin transfers from miners to exchanges is also positive. This means that miners are entering a bearish zone and prefer to settle more bitcoins faster.
As might be expected, companies in mining Bitcoins are feeling this market plunge even deeper. This is particularly the case with the share of the company Canaan which, however, reached in March 39.10 dollars per share during the month of March 2021, lost approximately 90% of its value. The same goes for VanEck’s DAM (Digital Asset Mining ETF). This company of mining went online just 3 months ago and has already lost 63% of its value at the end of the first ten days of June compared to its record $46.05.
Bitcoin has dropped more than 50% since its peak in November 2021, when it hit $69,000. At the time of writing, it is trading at $19,736 on Binance. Before this market crisis gets worse and affects the miningthe latter has already been severely tested by various banning measures in China, but also in some US states, in particular the State of New York which has voted a two-year moratorium on banning mining Fossil powered PoW.
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Luc José Adjinacou
Far from dampening my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. Therefore, I decided to study and understand the blockchain and its many uses and transmit information related to this ecosystem with my pen.