Bitcoin mining continues to be my favorite topic. I finally gave up hobby mining as I discovered that I can no longer compete as a crypto enthusiast and retired my latest ASIC in February of this year. Even if I buy the latest equipment, I can hardly compete on electricity.
After halving in May, the mining hash rate briefly dipped, however it has been going up ever since. Difficulty has moved yet to another all-time high:
While the bull-run has already started in BTC, I still believe that price needs to make up a lot of ground in order to justify the rapid deployment of mining capacity in BTC and its network.
Today, I discovered finally that Bitcoin mining is less profitable than ever!
Coindesk - Bitcoin mining - less profitable than ever!
Among many interesting findings, the author Colin Harber states that according to North American bitcoin mining company Luxor’s hashrate index, miners are extracting $0.096 for every terahash they produce (before the recent price spike, it was lower still at roughly $0.08). This time three years ago, miners could expect to make roughly $1.40. Their revenue in October of 2019, though several magnitudes less than what they were raking in during 2017’s market mania, was still double today’s cash flows at $0.16.
As I have commented in the past, BTC has been disappointing and worrying with the centralization of mining, however I already feel partially vindicated with price movement finally responding to the increase in mining hash rate deployed. I will continue to HODL as I expect BTC to be fully established as the benchmark crypto and its core characteristic in the limited total supply will play the necessary deflationary role against the continuous depreciation of fiat currency.
Hronology of my mining observations:
4. https://www.publish0x.com/exploring-the-range-of-crypto-opportunities/btc-mining-hashrate-is-hits-new-all-time-high-while-btc-pric-xyvxnpy
