Although the Mining revenue in the first six months of this year already exceed all of the income from 2017, will have the Bitcoin Miner difficulty to remain profitable. Due to the rising Hashrate of the net profits are decreasing in the industry since the beginning of the year continuously. This puts particularly smaller Player in front of challenges.
The bear market also demands of the Mining industry’s willingness to make sacrifices. In spite of higher sales, many of the miners have difficulty to remain profitable. This is particularly due to the rising Hashrate, reported the crypto-platform Diar. The Hashrate has doubled in the case of Bitcoin, within four months from 28 quadrillion Hashes per second (28 EH/s) to the current level of 50 u/s almost. 27. August they reached a peak of 61.8 U/s, which corresponds to a 35-percent jump within two days:
The hash rate of #bitcoin jumps to 61.8 EH/p To increase by 35% in 2 days. pic.twitter.com/cJkuInzgVj
— A v B ⚡ (@ArminVanBitcoin) August 28, 2018
In connection with the – compared to the beginning of the year – low exchange rates, the high hash rate, particularly for smaller Mining companies is not good news. Because this reflects, ultimately, an increasing Difficulty Level and, thus, growing competition in the industry. To reward the Mining companies for the provided computing power, the price of Bitcoin is currently simply too low. The price at which the Miner at the current Difficulty are viable economies, estimated to be of the Sam Doctor of the Fund came to 7,300 US dollars:
“Despite the bear market of Bitcoin Hashpower has doubled since may on 57 EH/s […] – Break-Even now at 7,300 US dollars.”
David against Goliath in the Bitcoin-Mining
The rising electricity costs appear to meet the small Player in the industry particularly hard. The cloud mining platform HashFlare had to suspend your payments temporarily totally. The company justified the step by the end of August with such a low payout ratio that it could not compensate for the maintenance fee of their customers with the Mining income.
While cloud mining-need to watch out for platforms such as HashFlare to be not from the market, build the Great Expansion. Already in July, we reported on the expansion plans of the Chinese Bitcoin Mining giants Bitmain Overseas.
The market, however, with 54,000 BTC that can be mined per month, still huge. So Diar, reported that in just the first three quarters of this year, the combined total sales of Coinbase Reward and network charges 4.7 billion US fraud dollars.
Now HashFlare has resumed operation. Nevertheless, the low level of electricity is a competitive cost in China, the advantage for resident companies. In combination with the expansionist intentions of this could be to a further consolidation of the market with the top dogs. The Mining remains – Despite all prophecies of doom – an exceptionally worthwhile business model for the Large.