Energy Costs Hurt Bitcoin Mining Profits

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The relationship between energy prices, hash rate, difficulty and the bitcoin price will be extremely important as the price of energy rises.

Wildcatters drilling wells in hopes of finding oil.

The relationship between energy prices, hash rate, difficulty and the bitcoin price will be extremely important as the price of energy rises.

via Braiins

The relationship between energy prices, hash rate, difficulty and the bitcoin price will be extremely important as the price of energy rises.

via Braiins

The below is a direct excerpt of Marty’s Bent Issue #1194: “Rising energy price, difficulty, and their effect on mining profitability. Sign up for the newsletter here.

Here’s something to pay close attention to in the coming months: the economics of the bitcoin mining industry. With the bitcoin price staying in a tight price range for the first three-and-a-half months of the year as hash rate and difficulty have risen consistently (for the most part) alongside surging energy prices, your Uncle Marty has his antennae perked for signs of struggle in the mining world. The current market conditions are certainly putting a strain on many miners at the moment. Particularly those who do not have (or think they have) fixed electricity prices that are relatively low compared to the rest of the market.



Source link Bitcoin Magazine

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