Experts Predicted A Decrease In The Profitability Of Mining

Experts Predicted A Decrease In The Profitability Of Mining

Experts Predicted A Decrease In The Profitability Of Mining

 

Mining bitcoin is still a profitable activity, but its profitability is under pressure from a decrease in the price of the cryptocurrency and an increase in the hash rate of the network. On this indicated Arcane Research analysts.

They noted that since the beginning of the year, the cash flow from mining 1 BTC has been in a sideways trend. After deducting electricity costs (at a rate of $0.05 per kWh), the Antminer S19 device brings about $31,000 per bitcoin, taking into account $39,000 coin price. The income from the less efficient Antminer S9 is already about $13,000 per 1 BTC.

Experts Predicted A Decrease In The Profitability Of Mining 1
Cash flow from mining 1 BTC. Data: Arcane Research.

The most important factor for the profitability of mining is the price of cryptocurrency, which has fallen from $46,000 to around $40,000 since the beginning of the year. The network hashrate, which has increased by 15% over this period, also seriously affects profitability, experts recalled.

Also Read: How Does Cryptocurrency Gain Value?

The high profitability of bitcoin mining during the autumn led to a massive increase in capacity, which will be put into operation in the coming months. This will inevitably lead to an increase in the hash rate, and then mining difficulties are confident in Arcane Research.

“As the hashrate rises, mining profitability could come under further pressure unless we see a significant increase in the price of bitcoin in the near future,” the analysts said.

In their opinion, a decrease in the demand for mining equipment signals a decrease in the profitability of cryptocurrency mining. Since December, the price for 1 TH/s for the most modern models of ASIC miners with energy efficiency above 38 W/TH has fallen by about 20% to $80.

Experts Predicted A Decrease In The Profitability Of Mining 2
The price of Bitcoin ASIC miners per 1 TH/s of power. Data: Arcane Research.

Recall that Arcane Research concluded that market overvaluation of Marathon Digital shares on expectations multiple hashrate growth companies.

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