Bitcoin Mining Profits Begin To Dip After A Year Of Success

According to data from mining pool BTC.com, after China hit miners in May this year, the price of Bitcoin hash (a measure of the Chinese power grid) was close to half. The obscure data shows that as competition from Chinese miners declines and the price of Bitcoin skyrockets, the rest of the miners are steadily registering gains before November. Galaxy Digital mining chief Amanda Fabiano compared this time to a "gold rush" in an interview with CoinDesk. However, researcher Jaran Mellerud from Arcane, Norway told CoinDesk that between November 9 and December 22, the cash flow for mining Bitcoin using Bitmain's Antminer S19 dropped. by 36%, while the S9 fell by 50%. Mellerud said the drop was "a 28% drop in Bitcoin prices and a 12% increase in [only] hard at the same time."

According to data from Arcane, profits from mining with S19 fell to zero until July. Data from Bitcoin browser Blockchain.com shows that since the end of July, 'eliminated' Chinese workers have found new places to trade, and mining competition has increased, especially in North America, as new investments have started. in line. . Bitcoin block difficulty only modifying based on hash number so time safety should be on my block. Mellerud said that "the number of Special Application Integration Services (ASICs) expected to be submitted by 2022 is incredible,"

The miners told CoinDesk that the hashrate could increase next year, delivering supplies and Chinese miners starting over. He said that means the "best gains" we see in 2021 "will continue to decline for the first few months of 2022".

A few weeks ago, some of the world's largest mining companies agreed with Mellerud's estimates in an interview with CoinDesk. Most people expect the hashrate to increase or even double next year due to the increased use of technology, which will increase the difficulty of mining and reduce income accordingly. However, the end result will depend on the value of Bitcoin, Mellerud said. "If the 2022 increment can outperform all new hashrates, we might see gains like 2021 in 2022."