Bitcoin mining, once known as one of the most profitable businesses, is now undergoing a tough patch. In the midst of rising global inflation, rising energy prices, the crypto future and competitive environment, Bitcoin miners find it difficult to stay in business.
While some lesser -known names have closed operations, major players have been forced to sell BTC assets to maintain the operation. Bitcoin miners, known for their ‘HODL’ strategy, have now started dumping their digital assets. According to data published by CoinMetrics, Bitcoin miners collectively own approximately 800,000 coins, an amount that is 300% more than collective Bitcoin ownership. MicroStrategyTesla, Galaxy Digital and Square.
The price of electricity in the U.S., home to some of the world’s largest mining companies, has been steadily increasing over the past few months. The price of Bitcoin, on the other hand, has dropped almost 70% in the last seven months. Both of these factors led to a large decline in the profits of BTC miners. According to Bitinfocharts, the profits of Bitcoin miners have dropped by more than 80% since November 2021. At the same time, my network difficulties have increased significantly.
Game of Survival
The new scenario in the crypto market makes it difficult for the winning BTC miners to survive without ‘setting up’ a ‘HODL’ strategy. Islam Shazhaev, CEO of OneBoost, says that selling Bitcoin at a loss is still a better option for survival than leaving crypto. mining industry.
“With rising energy costs, crypto miners typically have to spend more money to maintain rigs online. This creates a challenging situation because many have to put up BTC ownership for sale to cover costs. Selling Bitcoin at this time will cause huge losses to miners,” he said. especially the older ones because the price is still trading below $ 25,000. However, it may help them keep the business throughout the industry will return to profits. With the current situation, miners are more likely to sell at a loss than stop mining altogether, “Shazhaev said.
Balanced Approach
In the current scenario, a balanced approach is needed by Bitcoin miners to survive in the crypto future, which includes cost -cutting initiatives, measured reductions in operations and the sale of digital assets to increase liquidity.
“It’s wrong to approach this season like‘ business as usual ’. Crypto miners can survive this crypto era if they are willing to strictly adhere to cost-cutting measures and use proven economic strategies that can help businesses fight the risks involved. inflation period, “Shazhaev explained.
Barnabas Goh, Head of Marketing at Zonda Global, believes that the reduction in operations will reduce hash levels and mining difficulties. “As always, it’s about achieving a balance that considers profits, people, space and purpose and it’s not an easy process, but there’s something we have to do as stewards of this industry and the world, and hopefully it can be overcome together,” Goh said.
Sade Bitcoin
According to data collected by Arcane Research, BTC miners ’‘ HODL ’ambitions collapsed in May 2022 as major players sold almost 100% of BTC production over the past month.
Recent sales trends and rising global inflation show a difficult path for the well -known Bitcoin miners in the industry. Cost cuts and large reductions in operations have forced some Bitcoin miners to cut jobs. With Bitcoin ownership declining, it will be difficult for small and medium -sized miners to stay operational if the BTC price stays below $ 20,000 for an extended period of time.
Bitcoin mining, once known as one of the most profitable businesses, is now undergoing a tough patch. In the midst of rising global inflation, rising energy prices, the crypto future and competitive environment, Bitcoin miners find it difficult to stay in business.
While some lesser -known names have closed operations, major players have been forced to sell BTC assets to maintain the operation. Bitcoin miners, known for their ‘HODL’ strategy, have now started dumping their digital assets. According to data published by CoinMetrics, Bitcoin miners collectively own approximately 800,000 coins, an amount that is 300% more than collective Bitcoin ownership. MicroStrategyTesla, Galaxy Digital and Square.
The price of electricity in the U.S., home to some of the world’s largest mining companies, has been steadily increasing over the past few months. The price of Bitcoin, on the other hand, has dropped almost 70% in the last seven months. Both of these factors led to a large decline in the profits of BTC miners. According to Bitinfocharts, the profits of Bitcoin miners have dropped by more than 80% since November 2021. At the same time, my network difficulties have increased significantly.
Game of Survival
The new scenario in the crypto market makes it difficult for the winning BTC miners to survive without ‘setting up’ a ‘HODL’ strategy. Islam Shazhaev, CEO of OneBoost, says that selling Bitcoin at a loss is still a better option for survival than leaving crypto. mining industry.
“With rising energy costs, crypto miners typically have to spend more money to maintain rigs online. This creates a challenging situation because many have to put up BTC ownership for sale to cover costs. Selling Bitcoin at this time will cause huge losses to miners,” he said. especially the older ones because the price is still trading below $ 25,000. However, it may help them keep the business throughout the industry will return to profits. With the current situation, miners are more likely to sell at a loss than stop mining altogether, “Shazhaev said.
Balanced Approach
In the current scenario, a balanced approach is needed by Bitcoin miners to survive in the crypto future, which includes cost -cutting initiatives, measured reductions in operations and the sale of digital assets to increase liquidity.
“It’s wrong to approach this season like‘ business as usual ’. Crypto miners can survive this crypto era if they are willing to strictly adhere to cost-cutting measures and use proven economic strategies that can help businesses fight the risks involved. inflation period, “Shazhaev explained.
Barnabas Goh, Head of Marketing at Zonda Global, believes that the reduction in operations will reduce hash levels and mining difficulties. “As always, it’s about achieving a balance that considers profits, people, space and purpose and it’s not an easy process, but there’s something we have to do as stewards of this industry and the world, and hopefully it can be overcome together,” Goh said.
Selling Bitcoin
According to data collected by Arcane Research, BTC miners ’‘ HODL ’ambitions collapsed in May 2022 as major players sold almost 100% of BTC production over the past month.
Recent sales trends and rising global inflation show a difficult path for the well -known Bitcoin miners in the industry. Cost cuts and large reductions in operations have forced some Bitcoin miners to cut jobs. With Bitcoin ownership declining, it will be difficult for small and medium -sized miners to stay operational if the BTC price stays below $ 20,000 for an extended period of time.
