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Sept. 27 (Reuters) – Think about the beleaguered Bitcoin miners.
In late 2021, miners were the toastmen in town with a sure path to profit. Connect powerful computers to cheap electricity, solve highly complex math puzzles, and then sell your newly minted coins on a booming market.
A year is a long time in cryptocurrency.
Global revenue from bitcoin mining dropped to $17.2 million per day amid crypto winter and global energy crisis, with miners earning $62 million per day, according to Blockchain.com data. It’s down about 72% since November last year.
Bitcoin miners continue to see their profits squeezed, said Joe Burnett, head analyst at Blockware Solutions. Energy prices are soaring.
This is putting serious pressure on some players who have bought expensive mining machines and rigs and hope the Bitcoin price will rise in order to recoup their investment.
Bitcoin is trading at around $19,000, failing to top $25,000 since August and recovering from November’s all-time high of $69,000.
At the same time, as more miners come online, the process of solving puzzles and mining tokens becomes more difficult. This means more computing power will have to be consumed, further increasing operating costs, especially for businesses without long-term power price agreements.
Bitcoin miner profits for computing power of 1 terahash per second have fluctuated between $0.119 and $0.070 per day since July from $0.45 last November, the lowest level in two years. approached.
Tough conditions may continue. Luxor’s Hashrate Index, which measures mining earnings potential, has fallen about 70% so far this year.
2140: The Last Bitcoin
It was painful for the miners.
Stocks of Marathon Digital (MARA.O)Riot Blockchain (RIOT.O) Valkyrie Bitcoin Miners ETF (WGMI.O) For example, cryptocurrency mining data center operator Compute North filed for bankruptcy last week.
But mining is ultimately a long-term challenge, and with the last bitcoin expected to be mined more than a century away in 2140, there are some opportunities for espionage in the dark.
William Szamosszegi, CEO of Sazmining Inc. Start his Bitcoin mining business using renewable energy.
In fact, many miners are holding off on buying rigs, forcing manufacturers to cut prices.
For example, the popular S19J Pro rig, which sold for an average of $10,100 in January, is now selling for $3,200, Luxor analysts said, adding that prices for bulk orders of some mining machines have risen. also noted that it has fallen 10% over the past week.
Chris Klein, co-founder of Bitcoin IRA, a cryptocurrency investment platform, said miners are very focused on energy efficiency to reduce costs and avoid the impact of climate change-related regulations. ‘ said it needed to.
From controlling balance sheets, processing units and energy costs, miners aim to survive regardless of current market conditions, he added.
Reporting by Lisa Pauline Matakkal and Meda Singh of Bengaluru.Edited by Tom Wilson and Pravin Char
Our criteria: Thomson Reuters Trust Principles.
Opinions expressed are those of the author. They do not reflect Reuters News’ commitment to integrity, independence and freedom from bias under its Trust Principles.
