Bitcoin mining in the 6 months of 2018 was not as profitable in comparison to the previous year. With the increase in network hash rate, miners need to pay now higher electricity bills rigorously affecting their bottom-lines. Last year, the revenues exceeded by a whopping $14 billion.
Despite the rise in cryptocurrency prices going over 40 percent, which is higher than the previous year, many more miners who are operating in the market are combating for a block reward whose value in fiat currencies is not matching up with this growth. It is even true that the miners of the largest cryptocurrency are producing much more in the present year than 2017, but the price they are paying to run their operations has augmented resulting less revenue growth.
Based on a research, China still remains one of the few nations that offer retail energy price packages making commercial sense for Bitcoin mining, reportedly with a mid-point cost of around $0.08 per kWH. It means the retailers need to pay about 0.08 per kWH (with a 30 times more profitability) and estimate put it lower for the wholesalers. New research shows that electricity costs did not come down for the maximum miners except those in China. This is what revealed by a research performed by Diar.
On the other hand, the Bitcoin network hash rate has gone double since May this year from 28 quadrillion hashes per second to over 57 quadrillion hashes per second. At the same time, Fundstrat Global Advisors’ Sam Doctor estimated the mining breakeven cost at $7,300. Doctor further noted that the said new number represented a $1,300 augmentation in breakeven cost since May this year.
The clear-cut top player in the world of Bitcoin mining is Bitmain. It has claimed to have made $2.5 billion in revenues in the last year. During the first quarter of 2019, China’s tech giant looks forward to unveiling more mining farms across other locations in the US like Texas, Washington and Tennessee, Unhashed noted. It has also claimed that over 51.8 or about 52 percent of its mining equipment is sold in its clients scattered in various countries, hence the tech giant is looking at an estimation of 95 percent of its total revenue.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]