Bitcoin Miners Suffer From Cryptocurrency’s Global Fall By CoinEdition
- September 27, 2022
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© Reuters. Bitcoin Miners Suffer From Cryptocurrency’s Global Fall
- From $62 million in Movember 2021, mining has dropped to $17.2 million a day.
- Decreasing margins is a common sight for modern Bitcoin miners.
- The last bitcoin might be mined in 2140.
Last November, Bitcoin miners were scoring $62 million a day in BTC mining, however, amid a crypto shakeout, the figure has dropped to a staggering $17.2 million a day. While 2021 miners could connect their powerful devices to cheap energy and sell newly minted coins in the market by solving manageable math problems, the picture is vividly different today.
In the words of Blockware Solution’s head analyst Joe Burnett:
Bitcoin miners have continued to watch margins compress – the price of Bitcoin has fallen, mining difficulty has risen and energy prices have soared.
After November 2021’s record-high $69,000, Bitcoin has not been able to hit above $25,000 since August and is currently trading at $19,000. For miners who have invested in expensive computers hoping to gain it back through returns, this has been troubling news.
Moreover, as the number of miners increases, mining puzzles have become more challenging. Requiring higher computing power in addition to rising operating expenses is especially problematic for those lacing long-term power pricing contracts.
Unfortunately, things aren’t looking up from here either, according to Luxor’s Hasrate Index, which measures mining revenue potential that has dropped by 70% in 2022.
As predictions go, the last Bitcoin that is expected to be minted might happen in 2140, a century later. And some suggest the ride till then is also expected to be rocky.
In related news, crypto-mining data centre operator Compute North went bankrupt last week. Moreover, Marathon Digital, Riot Blockchain (NASDAQ:), and Valkyrie Bitcoin Miners ETF shares have experienced a 60% loss this year.
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