Solely 5 miners stay worthwhile after bitcoin dropped to costs beneath $54,000, mentioned f2pool, a crypto mining agency. “With #Bitcoin trading below $58k, what is the current profitability for mining? At a rate of $0.08/kWh, ASICs less efficient than 23 W/T operate at a loss,” the miner mentioned in an X put up. The identical put up displayed a graph displaying worthwhile miners at this price vary.
Supply: f2pool on X
At asset costs beneath $54,000, solely 4 of Antminer’s rigs and considered one of Avalon’s stay worthwhile, with all the pieces else working at losses. That may push extra miners to promote their asset holdings to cowl operational prices. Final month already noticed Bitcoin miners liquidate over $1 billion in two weeks. The asset’s price moved from $70,000 to $65,000 over that interval.
As the biggest blockchain community underwent its halving mechanism this yr, reducing block rewards in half and taking rewards down to three.125 bitcoins from 6.25, many miners needed to promote their holdings to cowl operational bills. The halving mechanism exists to maintain bitcoin deflationary however comes at the price of sending miners away from the community as a result of mining profitability is lowered.
Some miners tried to push by beforehand however needed to file for chapter as a result of the rewards weren’t sufficient to accrue earnings. That subject is felt extra now as block rewards are the bottom they’ve ever been and can solely lower each 4 years.
Many mining corporations that may afford to take action are buying smaller counterparts to extend the ability they’ll entry as a lot as doable to mine as many blocks as they’ll. Doing so affords them elevated rewards and can assist them keep worthwhile. Nevertheless, that isn’t an choice for many Bitcoin miners, making it tough to register earnings within the quick time period.
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