Although bitcoin is the main cryptocurrency in terms of market value and capitalization, its mining is unprofitable for most miners. This is mainly after including the retail price of electricity as it consumes a lot of energy. As a result, there is a question mark whether to extract the bitcoin money to obtain profits related to bitcoin mining. While it might seem a bit absurd until a few weeks ago, things are changing for the better.
Mining is difficult
Although bitcoin miners have generated record revenue of $ 5 billion over the past six months, they have not been able to earn any profit for the first time. This is mainly due to costs and it becomes increasingly difficult for me while the premiums continue to be the same. The mining structure suggests that each subsequent block requires more computing power than the previous one, making it a difficult proposition to survive. A recent analysis suggested that the cost of bitcoin mining exceeded the cost benefits of electricity for most mining operators, even though they may have generated record revenue.
There is no doubt that the existing atmosphere is not favorable enough for the miners and has indicated a great change in the perception of miners of the main digital currency. Although China offers relief in terms of low-cost, low-cost electricity, overhead costs make it difficult to generate profits. There is also more competition that damages profitability. It is interesting to note that Bitmain is the producer of most of the mining rigs, and it is the responsibility of this to increase the computing power, as well as a level of efficiency that makes mining profitable.
Changes in reality
Until a few weeks ago, nobody ever thought that bitcoin mining would become unprofitable and that bitcoin liquidity extraction would make it profitable. For example, in the last 5 days period, the price of cash in bitcoins rose 47.71 percent to trade around $ 634 levels. In fact, this is the only virtual resource that has increased by more than half in the top ten. On the other hand, bitcoin increased by only 3.5% in the same period.
Therefore, it is the price that makes my bitcoin less attractive because the reward factor remains the same. The recent rise in bitcoin money prices has suggested that miners are getting more than two percent of the bitcoin money from mining related to bitcoin mining. The spread is likely to increase further in the coming days compared to the fourth-ranked digital currency.
The reason behind it is that mining difficulty algorithms are set down by as much as 50%. For example, a 479,808 block may require an adjustment of the difficulty of about 50 percent downwards. This would mean that if all the rest remains the same, miners could almost double in bitcoin money from mine compared to bitcoin.
This would mean that more miners would be tempted to move towards bitcoin money from the bitcoin. As a consequence, the liquidity factor, which is the main point in favor of bitcoin, will be eliminated in bitcoin cash. The trend has already been seen, and there are already enough indications that the bitcoin money will continue to move higher while the bitcoin will have difficulty and will tend to fall at least in the short term.