Mining profitability has fallen to $ 0.07 per terahash, hash rate has been reduced: has the Bitcoin network become vulnerable?

By World Crypto | World Crypto | 18 Mar 2020


On March 17, 2020, just two months before the halving, the profitability of BTC mining fell to a historic low:

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The hashrate, which constantly reached record levels, has also fallen sharply today. At the beginning of this month, the indicator reached another peak, after which Bitcoin began to consolidate. Now, miners are clearly concerned about the state of the industry.

The hash rate fell below 100,000,000 TH / s. This signals that the outflow of miners from the industry will begin soon.

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                                     Bitcoin Hashrate Decreases

Many experts predict the extremely optimistic long-term trend of Bitcoin. However, tell miners who will soon receive half the reward for creating a new block. Such low BTC prices could be a catalyst for the surrender of miners.

It is likely that another outflow of weak players from the mining industry will happen soon, but this is not necessarily a bearish signal. Why? In each cycle, there are three stages of capitulation of miners before the start of the bull market, now the community is just waiting for the last phase.

Can miners make money with such a low BTC price?


This largely depends on the cost of energy and equipment that they use. If the company was purchased by one of the most common miners in the world, ASIC S9, then its activity will not be profitable.

According to the latest report, ASIC S9 provides the worst break-even in the market. In fact, in order to profit from mining using this equipment, the price of BTC must be above $ 7643.

Those miners who chose Bitmain's ASIC S17 are still afloat. They still make a profit as long as Bitcoin is trading above $ 3,598.

Other popular variations in Bitcoin mining equipment - Innosilicon T3 + 67 and Avalon 1166 - have break-even points of $ 3970 and $ 4299, respectively. All of these numbers will be substantially adjusted when halving occurs.

What happens if the BTC price continues to fall?

Earlier this month, Adaptive Capital partner and well-known crypto analyst Willy Wu said that if the price drops to $ 1,000, then:

We will begin to test the strength of the last miner who can continue to work.

He also warned that if this happens, the network will be vulnerable to attacks:

If we have only a few miners left and the hashrate is not enough, then an attack on Bitcoin will significantly cheaper for states. At a certain price level, he may not be protected against a strong opponent.

It is hoped that prices will continue to recover or fluctuate at the same level. Although, perhaps, the interested states will be too busy restoring their own economy and will not pay attention to the weakened digital asset. Moreover, the Chinese economy will be the first to get out of the stagnation associated with the spread of coronavirus, so the hopes that the mining industry will stabilize again remain.

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World Crypto
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