Méi a méi geschriwen miners are throwing in the towel amid soaring energy prices and plunging profitability. This has had a knock-on effect on hash rates and difficulty, which are also starting to fall.
As Bitcoin mining becomes less profitable, more and more rigs are being powered down, resulting in a fall in hash rate and difficulty.
an engem Rapport on the State of the Network, analytics firm CoinMetrics delved into the mining sector in what has been a highly volatile quarter for crypto markets.
It cited rising energy costs as a primary reason for the Bitcoin miner exodus. Combined with the slump in BTC prices, the double whammy means more miners are powering down.
“Even with the most cutting-edge mining hardware such as Bitmain’s Antminer S19, each machine costs as much as $1.50 more per day to operate now vs. a year ago,” it noted.
Industrial-scale mining companies with tens of thousands of these machines will be feeling the pinch.
Source: https://beincrypto.com/bitcoin-miners-bail-out-as-energy-prices-soar-and-profitability-plunges/